Question

Find the savings plan balance after 12 12 months with an apr of 8 8​% and monthly payments of ​$ 100 100.

Answer 1

Assume first payment is at the end of the first month.

APR=8% per annum = 0.08/12 per month
n=12 months
Monthly payment, A = $100

Future value

`F=(A((1+i)^n-1))/(i)`

`=(100((1+0.066/12)^12-1))/(0.066/12)`

`=6.803356/0.0055`

`=1236.97`