To help Janette cover her college expense, her parents provide Janette with a monthly allowance of $340. Besides, Janette earns $600 per month from her part-time job. Janette has to pay $200 in rent expense and $ 75 per month for her car insurance. Janette plans to spend monthly $80 on clothes, $50 for personal care, and $100 for entertainment. Janette also estimates her monthly eating out expense at $140, and she expects that $100 will be enough to cover all her other spending. 

Given that Janette follows the above income/spending schedule, how much can she put aside within eight months? Assume Janette puts the amount she put aside within eight months on the account that earns 4.75% per year, compounded annually. What would be the balance of this account in five years? Round your answers to the nearest dollar. Show your work.

Answer rating: 100% (QA)

ANSWER I Step 1 calculation of monthly savings Monthly receipts Monthly ... View the full answer