Answer:
SEE EXPLANATIONS
Step-by-step explanation:
PART 1:
you have 2,200 and interest is 1.55%
A = 2200(1+0.0155)1 A = 2,234.10
A = 2200(1+0.0155)10 A = 2,565.80
A = 2200(1+0.0155)9 A = 2,526.63
A = 2200(1+0.0155)8 A = 2,488.07
9 Years with $2,526.63
PART 2:
A = 2425(1+0.0155)2 A = 2,500.76
You need to invest $2,425.00
PART 3:
A = 2000(1+0.018)7 A = 2,266.02
You have $2,266.02 which is underbudget
PART 4:
Personally, I would add to the investment of $2,200 so that it will grow to $2,500 faster. If I waited for just the $2,200 to grow alone it would take 9 years and if I'm looking at a trip now I would like to go sooner. So if I keep adding to the original $2,200 overtime it will collect interest faster and I would be able to take the trip sooner. I justify my answer with PART 2.
