Question

Find the savings plan balance after 1 year with an APR of 13% and monthly payments of $100. Assume an ordinary annuity. a. $1,271.18 c. $1,273.16 b. $1,272.17 d. $1,274.15

Answer 1

Answer:d 1274.15

Step-by-step explanation:math duh

Answer 2

Prerequisites

A = accumulated savings plan balance

PMT = regular payment(deposit) amount

ARP = annual percentage rate(decimal)

n = number of payment periods per year

Y = number or years.

Savings Plan Formula

`A = PMT((1 + (APR)/(n))^(nY) - 1)/(((APR)/(n)))`

Step By Step Explanation

First, plugin what is known into the Savings Plan Formula

Second, solve the Savings Plan Formula

`A = PMT((1 + (APR)/(n))^(nY) - 1)/(((APR)/(n)))`

`A = 100((1 + (.13)/(12))^(12*1) - 1)/(((.13)/(12)))`

`A = 100((1 + (.13)/(12))^(12*1) - 1)/(((.13)/(12))) = 1274.1459`

Round $1274.1459

$1274.1459

$1274.15

Answer = d $1274.15