Mission Project: Part B

Use the following resource to assist you in completing Part B of your Mission Trip assignment.

Adding to the paper you submitted for Part A of your project, develop a financial plan to fund your proposed mission project to that

country. Write an additional 500–750-word narrative describing the country of your choice, the expenses you expect to incur for the trip,

and how you will pay for those expenses. Your paper must include a budget in table format. Use the Budget Worksheet spreadsheet to assist

you in creating your budget.

Include the following in your paper:

1. Provide reasonable estimates for the expenses that will be incurred during your trip and the sources used to create the estimates.

These include at a minimum: transportation, supplies, food, and lodging.

2. For any expenses that will be incurred outside the United States, you must provide the amounts in both U.S. dollars and the local

currency. Use the current exchange rate, and be sure to cite and reference your source.

3. Calculate several different ways to pay for your trip using the savings and loan information from Chapter 4 of your textbook,

incorporating the following points into your plan.

a. You already have 10% of the money needed for your trip, which begins in five years. You decide to invest that money at 4% APR

compounded quarterly. Calculate out how much this will grow to by the start of your trip using the Compound Interest Formula from p. 216

of your textbook.
Here A(t) = value of the account after t years, the initial investment, APR (written as a decimal), number of times compounded per year,

number of year.

b. A philanthropic company, Missions-R-Us, has agreed to give you $100 each month from now until the trip starts. This money will be

invested in an account that earns 6% APR compounded monthly. Figure out how much this will amount to by the start of your trip using the

Savings Plan Formula on p. 228 of your textbook.

Here the monthly contributions, annual interest rate as a decimal, number of times compounded annually (12 – once per month), time of

the loan in years, value of account after t years.

c. The remaining balance must be taken out as a loan. If the above will pay for your entire trip, you must still investigate these

loan scenarios. You can consider taking out a $10,000 emergency fund at these rates. There are two banks willing to offer you a loan. Bank

A will lend you a 5-year loan at 9% APR compounded monthly with monthly payments. Bank B will lend you a 10-year loan at 12% APR

compounded monthly with monthly payments. Calculate the payment for each of these loans using Loan Payment Formula on p. 249 of your

textbook and discuss the reasons for choosing one or the other.

Here the initial loan amount, annual interest rate as a decimal, number of times compounded annually, time of the loan in years, your

monthly payment

Include all calculations, including the formulas used, formatted with the Equation Editor in Microsoft Word. If you use a spreadsheet to

check your calculations, include the spreadsheet as a separate attachment.

Include three or more scholarly resources.

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