Question

Need help!

Use the Savings plan to find the amount A=? if monthly payments are $250 with APR=4% for 10 years.

Answer 1

`{ \qquad\qquad\huge\underline{{\sf Answer}}}`

Here we go ~

The required formula is :

`\qquad \dashrightarrow \sf \: A = P * \frac{{\bigg(1 + (APR)/(n) \bigg) }^(ny) - 1}{(APR)/(n)}`

• 
  `\textsf{A = Total accumulated savings }`
• 
  `\textsf{P = regular deposit }`
• 
  `\textsf{APR = annual percentage rate }`
• 
  `\textsf{n = number of payment period per year}`
• 
  `\textsf{y = number of years }`

Now, plug in the values ~

`\qquad \dashrightarrow \sf \: A = 250 * \frac{{\bigg(1 + (0.04)/(12) \bigg) }^((12 * 10)) - 1}{(0.04)/(12)}`

`\qquad \dashrightarrow \sf \: A = 250 * \frac{{\bigg(1 + 0.0033 \bigg) }^((12 0)) - 1}{0.0033}`

`\qquad \dashrightarrow \sf \: A = 250 * \frac{{\bigg(1.0033 \bigg) }^((12 0)) - 1}{0.0033}`

`\qquad \dashrightarrow \sf \: A = 250 * (1.4908- 1)/(0.0033)`

`\qquad \dashrightarrow \sf \: A = 250 * (0.4908)/(0.0033)`

`\qquad \dashrightarrow \sf \: A = 250 * 147.249`

`\qquad \dashrightarrow \sf \: A = 250 * 147.2498`

`\qquad \dashrightarrow \sf \: A = 250 * 147.2498`

`\qquad \dashrightarrow \sf \: A =\$ 36812.45`

That's the required value ~