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)
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)
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question
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)
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