Final answer:
To calculate your total vacation fund, you will have $1,590 with one year of interest at 7% plus $2,191 deposited in the second year. The amount available after two years for your vacation is $3,892.30.
Step-by-step explanation:
To calculate the total amount of money you will have for your vacation after saving and earning interest in a savings account, you'll need to apply the concept of simple interest because the problem does not specify compounding. You plan to deposit $1,590 in the first year and $2,191 in the second year, with an annual interest rate of 7%.
The first deposit will earn one year's interest, and the second deposit will be made at the start of the second year and will not earn any interest before the vacation. The formula for simple interest is I = PRT, where I is the interest earned, P is the principal amount deposited, R is the annual interest rate, and T is the time in years. However, since the second deposit does not earn interest in this scenario, we only need to calculate interest on the first deposit.
The calculation for the first deposit after one year is: Interest = $1,590 * 0.07 * 1. Therefore, the interest earned on the first deposit is $1,590 * 0.07 = $111.30.
The total money for the vacation will be the sum of both deposits plus the interest earned on the first deposit: $1,590 + $111.30 + $2,191 = $3,892.30. This is the amount you will have available for your Horn of Africa Pirate Adventure in two years.