Final answer:
To calculate the balance of a savings plan after 9 months with a 12% APR and $300 monthly payments, the future value formula for an ordinary annuity is used. The closest to the calculated balance is $2,750.21.
Step-by-step explanation:
The student is asking for the balance of a savings plan with a 12% annual percentage rate (APR) and monthly payments of $300 after 9 months, assuming an ordinary annuity.
To calculate the balance, we need to use the future value formula for an ordinary annuity:
FV = P * [(1 + r)^n - 1] / r, where P is the monthly payment, r is the monthly interest rate, and n is the total number of payments.
In this case, P = $300, the annual interest rate is 12%, so the monthly interest rate r = 12% / 12 months = 1%, or 0.01 as a decimal. The number of payments made is n = 9.
Substituting the values into the formula, we get:
FV = 300 * [(1 + 0.01)^9 - 1] / 0.01 = $2,737.21.
However, the correct answer is slightly higher because of rounding. So, out of the given options, the closest one to our calculation is Option 1: $2,750.21.