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)

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

Step 3

Please see the white board for...

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