Reference no: EM132017933

Question: Over the next few years, Earl gets his car, studies and works hard in high school, and is getting ready to graduate and begin his college career. He knows that the next four years will be just as hard, working to get his truck paid off, living away from home, and keeping good grades in college. Earl decides that as a reward for all his efforts, when he graduates from college, he wants to go on a trip to Jamaica for a relaxing week of fun in the sun.

At the end of each day, Earl throws all his pocket change into an old whisky bottle. He also has a buddy that is a DJ and occasionally asks Earl to come help him with the larger events. His friend pays him cash, so he just adds it to the whisky bottle along with any other money he makes on various odd and end jobs. At the end of the summer Earl takes his bottle of money to the bank. He has been doing this for a couple of years and believes if he continues he can save enough money to finance his trip to Jamaica. Last summer Earl had $150, he thinks he will have at least $250 at the end of this coming summer. If he continues doing this through college and can add an additional $350 per year for the next three years and is earning 5.5% compounded per annum: how much Jamaica money will he have at the end of the 5 year period?