To find the savings plan balance after 12 months with an APR (Annual Percentage Rate) of 6% and monthly payments of 250.0BJ, we can use the formula for compound interest. The formula is:
A = P(1 + r/n)^(nt)
Where:
A = the final balance
P = the initial principal (starting balance)
r = the annual interest rate (as a decimal)
n = the number of times interest is compounded per year
t = the number of years
In this case, the monthly interest rate would be 6% / 12 = 0.06/12 = 0.005.
The number of times interest is compounded per year (n) is 12, as it is compounded monthly.
The number of years (t) is 1, as we want to find the balance after 12 months.
Using the formula, we can calculate the final balance as follows:
A = 250.0BJ * (1 + 0.005)^(12*1)
Calculating inside the parentheses first:
(1 + 0.005) = 1.005
Then, raising that to the power of 12:
1.005^12 = 1.061678249
Finally, multiplying that by the initial principal (250.0BJ):
250.0BJ * 1.061678249 = 265.41956225BJ
Therefore, the savings plan balance after 12 months with an APR of 6% and monthly payments of 250.0BJ would be approximately 265.42BJ.