Essay Example on the Travel Budget for the Trip to Micronesia

Micronesia is made up of numerous islands that are scattered in the western Pacific Ocean. They became part of the UN Trust Territory following the World War II. This was under the US administration. Four Islands in the Eastern side adopted their constitution in 1979 and became the Federated States of Micronesia. It is among these four islands that the trip will be conducted. The nation attained its independence in 1986. This was under the Compact of Free Association, which it formed with the US government. The present concerns of the nation include education, large-scale unemployment, overdependence of the US foreign aid and overfishing.

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Micronesia has a population of approximately one hundred and five thousand people. Only twenty-two point four percent of the total population live in urban centers. The nations capital city is Palikir and the official currency used is the US Dollar. The major religions in the nation are Catholic and Protestant. The surface area of the nation covers approximately seven hundred and two square kilometers or two hundred and seventy-one square miles. The highest point in the nation is Dolohmwar, and it measures approximately two thousand five hundred and ninety-five feet above sea level. Micronesia has a favorable climate.

The tropical islands of Micronesia enjoy relatively warm temperatures all year round. In this region, the air is humid accompanied with heavy rainfall in most days. The tropical typhoons pose a threat, mostly to low-lying atolls, which are near the sea level. Education is considered important for the nations economy. The nation has several higher learning institutions. In the nation, citizens aged between six and thirteen are required to attain education. The literacy rate of citizens aged from fifteen to twenty-four years is ninety-eight point eight percent. The nation lacks numerous mineral resources. However, it has a high-grade phosphate that can be mined at Nauru region.

The residents of the nation are referred as Micronesians. They have a large cultural diversity, which is typified by the existence of eight different indigenous languages. Nevertheless, English is the principal language used for commerce. Over the last fifteen years, Pohnpei has turned into the most westernized region in the nation. Nevertheless, traditional leadership still plays a leading role in the state. Micronesia has a rich history that dates back centuries ago. The islands of Micronesia were originally settled by eastern sailors from Asia. Later it was discovered and settled by travelers from Spain, German, and Japan. However, today Micronesia is an independent nation, which is self-governing.

Expenses

Car hire is the most convenient method of transportation in Pacific Islands of Micronesia. The nation has up to a dozen car rental companies to choose. The only alternative to this means of transport is air transport since there are six airports in the nation. Micronesia has no railway transportation services. Most of the transportation expenses that will be incurred during the trip will be in car rental charges. Other expenses will be incurred in buying food and basic supplies from the local outlets in the nation. Ultimately, the team will incur boarding expenses in the local guest houses.

Paying for Expenses

Micronesia is a markedly underdeveloped nation. There are no advanced payment systems like in other parts of the world. The nation has only seven financial institutions that have few branches in various parts of the nation. For this reason, the citizens do not enjoy payments systems as the use of credit cards or international online payment systems. The ordinary form of payment during the trip will be cash. Cash payments will be made when paying for car rental services, boarding facilities, food and other basic supplies. The local people trade using the US Dollar. During the trip, all members will use the US Dollar currency in all their transactions.

Tabulation of the Travel Budget for the Trip to Micronesia

Expenses Cost Per Person in US Dollars(Monthly) Total Cost for Ten Persons in US Dollars (Monthly)

1 Passport $80 $800

2 Visas $160 $1600

3 Air tickets $1600 $16000

5 Car rental $300 $3000

6 Lodging $600 $6000

7 Food $300 $3000

8 Maps $15 $150

9 Fuel $1000 $10000

10 Miscellaneous $500 $5000

Totals $4555 $45550

Sources of Budget Information

The cost of passport and visa for the travel destination was obtained from the US Department of States website. The cost of air tickets was obtained by calling the three local airlines that travel to Micronesia. The sources of the costs of the rest of the items in the budget were obtained by the local travel centers to Micronesia. Supporting information about the costs was obtained from Micronesia travel websites.

Different Ways to Pay for the Trip

Method 1

At=A01+rNNtA (t) = value of the account after t years, A0= the initial investment, r= APR (written as a decimal), N= number of times compounded per year, t= number of year.

A = 4555 (1+ 0.04/4) ^ (4x5) = $5557.96563

The accrued amount after five years will be $5558, expressed to the nearest dollar.

Method 2

A(t)=PMT1+rNNt-1rNPMT= Monthly contributions, r= annual interest rate as a decimal, N= number of times compounded annually, t= time of the loan in years, At= value of account after t years. (100. ((1+0.005)60 1)) / 0.005 A (t)

100. (0.34885015) = 34.885015 / 0.005 = $6977.003

The amount of this money after the five years will be $6977

Method 3

First you should get the remaining balance to cover the whole budget. From the two investments, the total sum attained will be as follows.

$5558 + $6977 = $12535

So the remaining balance will be $45550 - $12535 = $33015

Scenario for Bank A

(33015 x (0.09/12)) / 1 (1+ (0.09/12))-60

(33015x0.0075)/ (1-0.6386997) = PMT

247.6125 /0.3613003 = $685.3371

The amount payable per month will be $685 stated to the nearest dollar.

Scenario for Bank B

(33015 x (0.12/12))/ 1 (1+ (0.12/12))-120

(33015x0.01)/ (1-0.30299478)

330.15/0.69700522 = $473.669336

The amount payable per month will be $474 stated to the nearest dollar.