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You would like to have $4,500 in 3 years for a special vacation following graduation...

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Question

Accounting

You would like to have $4,500 in 3 years for a special vacation following graduation by making deposits at the end of every six months in an annuity that pays 4% compounded semiannually.
a. Use one of the formulas below to determine how much you should deposit at the end of every six months.
A=P[(1+rn)nt-1](rn),P=A(rn)[(1+rn)nt-1]
b. How much of the $4,500 comes from deposits and how much comes from interest?
a. In order to have $4,500 in 3 years, you should deposit $714 at the end of every six months.
(Do not round until the final answer. Then round up to the nearest dollar.)
b. $ of the $4,500 comes from your deposits and $ q, comes from interest. (Use the answer from part a to find this answer. Round to the nearest dollar as needed.)
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