Zach wants to take his family on a cruise in 4 years and he estimates the cost of the cruise will be $16,500. How much money should he deposit each month into an account that pays 3,99% monthly in order to have the needed money?

Monthly deposit= $317.62

Explanation:

Giving the following information:

Zach wants to take his family on a cruise in 4 years and he estimates the cost of the cruise will be $16,500.

Annual interest rate= 3.99%

First, we need to determine the monthly interest rate:

monthly interest rate= 0.0399/12= 0.003325

Now, using the following variation of the future value formula, we can determine the monthly deposit:

FV= {A*[(1+i)^n-1]}/i

A= annual deposit

Isolating A:

A= (FV*i)/{[(1+i)^n]-1}

n=4*12= 48

i= 0.003325

FV= 16,500

A= (16,500*0.003325)/ [(1.003325^48)-1]

A= $317.62

cognitive overload: having a lot on your mind impairs decision-making and tends to result in the simplest, but not necessarily best, option being selected.

empathy gaps: overlooking how you might feel in a different situation can result in unnecessary purchases, such as overbuying when shopping for food on an empty stomach.

optimism and overconfidence: wearing rose-tinted glasses and having unrealistic expectations about the future can affect money management and leave you unprepared for a change in circumstance.

instant gratification: seeking instant gratification drives impulsive spending and can undermine long-term planning and savings.

harmful habits: automatic or mindless behaviour can amplify a poor financial decision as it becomes a recurring event.

social norms: we are heavily influenced by the actions of others; while this can be in certain circumstances, it also contributes to the pressure to keep up with the joneses through conspicuous consumption.

explanation: i am going to tell you a lie dont know i just wanted to answer lol