Part 2:
You are planning to go on this trip in 2 years. How much money will you need to invest at a 1.55% interest rate compounded annually in order to have $2500 in 2 years? Use the compound interest formula A = P (1 + i)n. (Round final answer to the nearest cent, but otherwise don’t round any intermediate values)


Part 3:
Now say you only have $2000 to invest and the highest interest rate you can find is 1.8% compounded annually. If you decide to wait 7 years to go on the trip, how much money will you have to spend on the trip? Use the compound interest formula A = P (1 + i)n. (Round final answer to the nearest cent, but otherwise don’t round any intermediate values)




Part 4:
Write a paragraph explaining how you would prepare financially for this trip. Would you invest the $2200 and wait until it grows to $2500? Would you add to the investment of $2200 so it will grow to $2500 by the time you want to take the trip? Would you invest the $2200 and come up with the rest of the money when you want to take the trip? Explain your answer.