You are planning a six month around-the-world trip in 2 years' time.You estimate that you will need $30 000 to pay for the trip.To accumulate this future amount you plan to deposit an equal amount in the bank each month,which will earn 9% nominal interest per annum compounded monthly.Your first payment will be made at the end of the first month.
a.How much must you deposit each month to accumulate the $30 000?
b.What is the effective annual rate of interest that corresponds to this nominal rate?
c.If you could instead make a lump sum payment today instead of monthly payments,how much would this sum have to be to reach $30 000 in two years if it earns a nominal 9% per annum compounded monthly?

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The Answer of You are planning a six month around-the-world trip in 2 years' time.You estimate that you will need $30 000 to pay for the trip.To accumulate this future amount you plan to deposit an equal amount in the bank each month,which will earn 9% nominal interest per annum compounded monthly.Your first payment will be made at the end of the first month.
a.How much must you deposit each month to accumulate the $30 000?
b.What is the effective annual rate of interest that corresponds to this nominal rate?
c.If you could instead make a lump sum payment today instead of monthly payments,how much would this sum have to be to reach $30 000 in two years if it earns a nominal 9% per annum compounded monthly?

You Are Planning a Six Month Around-The-World Trip in 2