Willrecently decidedthat he’d like to take a trip this upcoming summer. Here’s some more informationabout Will and his goal:•$500 a month from his parents•$2,000 saved up from a summer job in his savings account, which earns 1% annually•$600 book expenses for his first semester at school•$500 book expenses for his second semester at school•His meal plan covers the majority of his eating, 18 meals a week•He plans to spend about $30 a meal for each of the remaining meals, plus about $40 a week insnacks, coffee, and other miscellaneous expenses.•He plans to spend about $250 over the course of each semester in entertainment (travel,movies, sporting events, etc.)•His housing and all other expenses are covered by tuition•The semester is 16 weeks (4 months) long•He believes his trip will be two (2) weeks long, and take place at the beginningof May•He wants to plan a road trip with some friends of his, prior to starting a summer internship in hishometown•They estimate that the total cost will be $5,000 for the 4 of them to split hotel, gas, food, andother miscellaneous expenses  Given the information for Will, how muchwill he need to save for his portion of the trip and for theremainder of his living expenses this year of school?(Hint: Calculate the future amount needed, withoutconsidering the effect of interest)

Question
Asked Sep 11, 2019
 
Will
recently decided
that he’d like to take a trip this upcoming summer. Here’s some more information
about Will and his goal:
$500 a month from his parents
$2,000 saved up from a summer job in his savings account, which earns 1% annually
$600 book expenses for his first semester at school
$500 book expenses for his second semester at school
His meal plan covers the majority of his eating, 18 meals a week
He plans to spend about $30 a meal for each of the remaining meals, plus about $40 a week in
snacks, coffee, and other misc
ellaneous expenses.
He plans to spend about $250 over the course of each semester in entertainment (travel,
movies, sporting events, etc.)
His housing and all other expenses are covered by tuition
The semester is 16 weeks (4 months) long
He believes his t
rip will be two (2) weeks long, and take place at the beginning
of May
He wants to plan a road trip with some friends of his, prior to starting a summer internship in his
hometown
They estimate that the total cost will be $
5,000 for the 4 of them to split hotel, gas, food, and
other miscellaneous expenses
 
 
Given the information for Will, how much
will he need to save for his portion of the trip and for the
remainder of his living expenses this year of school?
(Hint: Calculate the future amount needed, without
considering the effect of interest)
 
check_circleExpert Solution
Step 1

We need to prepare a table showing usage of funds and sources of funds. Usage of funds will tell us how much money is required. Sources of funds will tell us how much money is available. The difference of the two is the shortfall amount that Will needs to save for his portion of the trip and for the remainder of his living expenses this year of school.

Step 2

Please see the white board for usage of funds. Total funds required = $ 5,090

SI. No. Funds required for
How it has been calculated?
$
Book expenses for his
1
600 Given
first semester at school
Book expenses for his
second semester at
school
Remaining meals
Snacks, coffee, and other
500 Given
2
960 $ 30 per week x 16 weeks x 2 semester
3
1,280 $ 40 per week x 16 weeks x 2 semester
4
miscellaneous expenses
Entertainment
His share of road trip
500 $ 250 per semester x 2 semesters
5
1,250 $5000 4
6
cost
Total Funds required
5,090
help_outline

Image Transcriptionclose

SI. No. Funds required for How it has been calculated? $ Book expenses for his 1 600 Given first semester at school Book expenses for his second semester at school Remaining meals Snacks, coffee, and other 500 Given 2 960 $ 30 per week x 16 weeks x 2 semester 3 1,280 $ 40 per week x 16 weeks x 2 semester 4 miscellaneous expenses Entertainment His share of road trip 500 $ 250 per semester x 2 semesters 5 1,250 $5000 4 6 cost Total Funds required 5,090

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Step 3

Please see the white board for...

How it has been calculated?
SI. No. Funds available from
4,000 $500 month x 4 months per semester x 2
semester
From his parents
1
|Summer job savings
2,020 $ 2000 x (1 interest of 1%)
2
future value
Total Funds required
6,020
help_outline

Image Transcriptionclose

How it has been calculated? SI. No. Funds available from 4,000 $500 month x 4 months per semester x 2 semester From his parents 1 |Summer job savings 2,020 $ 2000 x (1 interest of 1%) 2 future value Total Funds required 6,020

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