Reference no: EM132582012

On January 1, you plan to take a trip around the world upon graduation four years from now. Your grandmother wants to deposit sufficient funds for this trip in an investment account for you. On the basis of a budget, you estimate that the trip currently would cost $21,500. Being the generous and sweet lady she is, your grandmother decided to deposit $5,125 in the fund at the end of each of the next four years, starting on December 31, 2015. The account will earn 8 percent annual interest, which will be added to the account at each year-end. (Future Value of $1, Present Value of $1, Future Value Annuity of $1, Present Value Annuity of $1) (Use appropriate factor(s) from the tables provided.)

Question 1: How much money will you have for the trip at the end of year 4 (i.e., after four deposits)? (Round your final answer to the nearest whole dollar amount.)

Question 2: What is the total amount of interest earned over the four years? (Round your final answer to the nearest whole dollar amount.)

Question 3: How much interest revenue did the fund earn in 2015, 2016, 2017, and 2018? (Round your final answers to the nearest whole dollar amount.)