In​ March, a family starts saving for a vacation they are planning for the end of August. The family expects the vacation to cost ​$1589. They start with ​$130. At the beginning of each month they plan to deposit 25% more than the previous month. Will they have enough money for their​ trip? If​ not, how much more do they​ need?

Answer 1

To determine if the family will have enough money for their trip, we need to calculate the total amount they will have saved by the end of August.

Starting amount: $130

March deposit: $130 + 25% = $130 + $32.50 = $162.50
April deposit: $162.50 + 25% = $162.50 + $40.63 = $203.13
May deposit: $203.13 + 25% = $203.13 + $50.78 = $253.91
June deposit: $253.91 + 25% = $253.91 + $63.48 = $317.39
July deposit: $317.39 + 25% = $317.39 + $79.35 = $396.74
August deposit: $396.74 + 25% = $396.74 + $99.18 = $495.92

Total amount saved by the end of August: $130 + $162.50 + $203.13 + $253.91 + $317.39 + $396.74 + $495.92 = $1959.59

The family will have saved $1959.59 by the end of August, which is more than the expected cost of their vacation ($1589). Therefore, they will have enough money for their trip.

Amount they need for the trip: $1959.59 - $1589 = $370.59.