Question

college question: when jack started his job working for an industrial manufacturing company, he contributed $211 at the end of each month into a savings account earned 2.4% interest compounded monthly for 7 years. at the end of the 7th year, jack was laid off. to help meet family expenses, jack withdrew $295 from the savings account at the end of each month for 2 years. At the end of the second year of being unemployed, jack found another job and started contributing $138 back into the savings account at the end of each month for the next six years. How much money would he have in the account

Answer 1

break out the question into the different parts.
1) fin FV-- PV = 0, pmt = 211(or -211), rate = 2.4%/12 (to get monthly), periods = 7years *12 months = 84 FV (at the end of the first 7 years) = $19,278
logic check-- if he did not earn interest and simply put $211 in a month for 7 years, the calculation would be 211*84 = $17724, so it looks abour right that with a bit of iterest, he would make an extra couple grand.