Question 1 You already have 10% of the money needed for your trip (which is 10% of $13,023.02 Trips Total cost I believe 10% is 1302.30 i maybe wrong), which begins in five years. You decide to invest that money at 4% APR compounded quarterly. Calculate out how much this will grow to by the start of your trip using theCompound Interest Formula
Question 2 A philanthropic company, Missions-R-Us, has agreed to give you $100 each month from now until the trip starts (The trip is 5 years from now). This money will be invested in an account that earns 6% APR compounded monthly.
Question 3 The remaining balance must be taken out as a loan. If the above will pay for your entire trip, you must still investigate these loan scenarios. You can consider taking out a $10,000 emergency fund at these rates. There are two banks willing to offer you a loan. Bank A will lend you a 5-year loan at 9% APR compounded monthly with monthly payments. Bank B will lend you a 10-year loan at 12% APR compounded monthly with monthly payments.