Question

7. Find the savings plan balance after 12 months with an APR of 9% and monthly payments of $300. Round to the nearest cent as needed

Answer 1

The savings plan balance after 12 months, with a 9% APR and monthly payments of $300, is approximately $3,477.38.

Step-by-step explanation:

To compute the savings plan balance, we employ the formula for compound interest:

`\[ A = P \left(1 + (r)/(n)\right)^(nt) \]`

where ( A ) is the future value of the investment/loan, ( P ) is the principal investment amount (the initial deposit or loan amount), ( r ) is the annual interest rate (as a decimal), ( n ) is the number of times that interest is compounded per year, and ( t ) is the time the money is invested or borrowed for in years.

In this scenario, the principal ( P ) is the accumulated balance after each monthly payment, the annual interest rate ( r ) is 9% or 0.09, the number of times interest is compounded per year ( n ) is 12 (monthly payments), and the time in years ( t ) is 1.

After calculating, the savings plan balance rounds to approximately $3,477.38.

Answer 2

To find the savings plan balance after 12 months with an APR of 9% and monthly payments of $300, you can use the formula for compound interest. The final balance would be $3,786.85.

Step-by-step explanation:

To find the savings plan balance after 12 months with an APR of 9% and monthly payments of $300, you can use the formula for compound interest.

1. First, convert the APR to a monthly interest rate by dividing it by 12. In this case, the monthly interest rate would be 0.09/12 = 0.0075.
2. Next, use the formula A = P(1+r)^n, where A is the final balance, P is the monthly payment, r is the monthly interest rate, and n is the number of months. Substitute the given values into the formula and solve for A.
3. For this question, the final balance would be A = 300(1+0.0075)^12 = $3,786.85 (rounded to the nearest cent).