To… Show more Ben is saving to go on a South Pacific cruis

Assignment Help Finance To… Show more Ben is saving to go on a South Pacific cruis

Finance

To… Show more Ben is saving to go on a South Pacific cruis

To… Show more Ben is saving to go on a South Pacific cruise four years from today. The trip will cost $10,000. To fund the trip he has decided to put his annual bonus into an account that will earn 6% interest compounded annually. According to his calculations his first bonus (to be received at the end of the year) will be $1,000. His second bonus (to be received 2 years from today) will be $2,000 and his third bonus (3 years from today) will be $3,000. a) How much will Ben have saved by the end of year 4? b) How much will he need to deposit TODAY in order to have enough for the trip? • Show less

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