Question

please show me what to put in the TVM solver in addition to solving the problem

TVM:

N=

I%=

PV=

PMT=

FV=

P/Y=

C/Y=

1. When Jack started his job working for an industrial manufacturing company, he contributed $240 at the end of each month into a savings account that earned 2.3 % interest compounded monthly for 6 years. At the end of the 6th year, Jack was laid off. To help meet family expenses, Jack withdrew $250 from the savings account at the end of each month for 1 years. At the end of the first year of being unemployed, Jack found another job and started contributing $180 back into the savings account at the end of each month for the next five years. Do the following: A. How much money would he have in the account at the end of the five years (after returning to work)? Use the TVM Solver to solve this problem. Show all the necessary work that you need perform to arrive at the answer. (12 points) B. Determine the total interest that Jack earned during the 12 years of the account. (12 points)

Answer 1

Answer:

Calculation of money that would be in the account at the end of next five years =(after returning to work):

TUM: N = the number of I%= Interext rate pestiode in which deposite / payments will be made. PvE present value PMT= the dollar amount of each anmuity payment / de polite Eva Future valere ply = payments per year - 12 chy - compoundings periode post year = 12 6 at calculation the end of of money next that would be in the account five year [aster returning to work] : il calculation of amount at the end of 6th year. PMI = $240 0.023 a $240 [(1+0.0233t2 ] 0.023 na bycare x 12 month = 72 periode. - $240 5.140927-] 0.023 - $ 219 4. 14o 11] 0.023 FV ? $ 43,40.-

I (11) calculation end of of amount 6th year. years from withdrawn for (7th year ending? the FV 2 PMTLI- (1+in] PMT - $250 j: 0.023 n a year x 12 monthe 2 12 pessiuds. $ 250 [1 -61+0.023792) 0.023 2 $250 (1- (140.023) 0.023. : $250 (1 – 0.76119) 6.023 - $250 110.3830] :. FV =$2596 6 in calculation restorining of to amount at the 12th year aftesi the work Lie for 5 year persiad] . FV = PMT [citing- $180 [c1+0.023401] 0.023 2 $180 (2.9132543 PIMT 2 $ 180 i = 0.023 na syearse x 12 months I = Go pesnode 6.023 ? $ 22,799

Note:

Amant of money at the end of next five years after returning to work) se after 12 years. பட்ட -$43,210 - $2596 +22,799 - $ 63,413. calculation of total intercet bour 12 years in ce follow Total Intericht = Total Future value at the end of 12 years amount for 12 yearly - only patenteret principle -$63,413 feuexo= (25 -- $63,413 - (($240x 72) – ($250X1L) + ($180X60) 2 $63,413- [617,280) – (3wo) + (10800 9$ 63,413 - $25080 Todal interest - $38,333.

calculation of principle amount for 12 years=$240 invested every month for 6years-$250 withdrawn for every month for

1year+$180 invested every month for next 5years

=$240*6*12-($250*1*12)+$180*5*12

=$25080

Note; Interest is 2.3%per month is assumed.If it is 2.3% per annum the calculations will be different.