You want to take a dream "vacation in 3.5 years". you plan to save up "$5,000" in your vacation sinking fund. assume an interest rate of 8% compounded annually. how much will you have to save if you make a lump sum deposit to the sinking fund (i) during the year or (ii) at the beginning of the year?

(a) (i) $1,540 and (ii) $1,540
(b) (i) $1,640 and (ii) $1,640
(c) (i) $1,540 and (ii) $1,110
(d) (i) $1,640 and (ii) $1,310

Non of the answers is correct. The correct answer is $3,819.33

Explanation:

Giving the following information:

You want to take a dream "vacation in 3.5 years". You plan to save up "$5,000" in your vacation sinking fund. Assume an interest rate of 8% compounded annually.

1) We need to use the following formula:

PV= FV/(1+i)^n

FV= 5,000/(1.08)^3.5= $3,819.33

It doesn't change whether it is at the beginning or end.

answer; /// the best answer to the above question is; the main economic goal that a society consider when deciding the best way to distribute its wealth is equity, this to ensure that all resources are equally distributed; ///(a) (economic equity)

due to the changes the federal reserve is making the unused reserves will impact the economy by them facing inflation. inflation is definfed as the increase in pricing of a good or service but the decline of the value of money used for purchasing those items. when the economy has a high inflation rate, they are subject to money loss and hurt on the economy.