SOLUTION: Holly is making monthly contributions of of $330 to her savings account which pays interest at the APR of 6.2%, compounded monthly. Right after Holly makes her 56th contribution, t

Question 1177220: Holly is making monthly contributions of of $330 to her savings account which pays interest at the APR of 6.2%, compounded monthly. Right after Holly makes her 56th contribution, the bank changes the APR to 7.8% and Holly makes 44 more $330 contributions. What is Holly's balance right after her last contribution?
Answer by Theo(13342) (Show Source): You can put this solution on YOUR website!
you can use the financial calculator at to solve this problem.

the procedure is as follows:

inputs for first pass.

pv = 0
fv = 0
np = 56
pmt = -330
ir = 6.2% / 12 = .516666666666...
payment at end of each time period.

click on fv and the calculator tells you that the future value is equal to 21,367.55.

inputs for second pass.

pv = -21367.55
fv = 0
np = 44
pmt = -330
ir 7.8% / 12 = .65
payment at end of each time period.

click on fv and the calculator tells you that the future value is equal to 45,162.67.

holly's balance right after her last contribution is 45,162.67.

the monthly remaining balance report from excel will show the same results.

the following displays show the inputs and outputs to the online financial calculator.

the following displays show excerpts from the output from the excel monthly remaining balance amounts.

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