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Complete the following table and calculate the values of A, B and C. Then determine if she can save enough money for the tour and calculate the extra money she will have, if any.
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1.2.1 Calculate the values of A, B and C.
Determine the annual interest rate.
The initial investment at Year 0 is 300. The interest rate is calculated as the interest earned divided by the principal amount at the start of the year.
The annual interest rate is .
Calculate the value of A.
A is the Value of Investment at Year 2. This is the sum of the Value of Investment at Year 1 and the Interest earned in Year 2.
The value of A is
\boxed{\mathbf{\3630}}$.Calculate the value of B.
B is the Interest earned in Year 3. This is of the Value of Investment at Year 2 (which is A).
The value of B is
\boxed{\mathbf{\363}}$.Calculate the value of C.
C is the Interest earned in Year 5. This is of the Value of Investment at Year 4. From the table, the Value of Investment at Year 4 is $4392.30.
The value of C is
\boxed{\mathbf{\439.23}}$.1.2.2 Determine whether she will be able to save enough money for the tour.
1.2.3 Calculate the extra money, if any, that she will have for the tour.To answer these questions, the cost of the tour is required. This information is not provided in the problem statement or the table.
However, we can calculate the total amount saved after 6 years (Value D).
The Value of Investment at Year 5 is 483.15. The Value of Investment at Year 6 (D) is:The total amount saved after 6 years is
\mathbf{\5314.68}$.
Without the specified cost of the tour, it is not possible to determine if she saved enough or to calculate any extra money.
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