SOLUTION: Suppose you are saving your money to pay for a vacation for your family. So far, you have 400$ saved. You plan on saving more each month so you can pay for the vacation at the end

Question 1178170: Suppose you are saving your money to pay for a vacation for your family. So far, you have 400$ saved. You plan on saving more each month so you can pay for the vacation at the end of the year. Assume that you save 10% more each month than the previous month.
Part A: Write a formula that would show the amount you will have saved after 1 year.
Part B: If the vacation costs a total of 8000$, will you be able to pay for it after 1 year?
Part C: Explain why or why not. Show your work to support your answer.
Answer by Boreal(15235) (Show Source): You can put this solution on YOUR website!
sum of a geometric series 400(1+.10)^12
400+440+484+(rounding)532+585+644+708+779+858+944+1034+1137=$8545 approximation.
r=1.1 (this is not going to converge, not if you want to go on vacation)
sum is a(r^n -1)/(r-1)
=400(1.1^12-1)/(1.1-1)
=400*21.38=$8553.71
It will be sufficient.

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