Question

Find the savings plan balance after 12 months with apr of 9 percent monthly payment of 150.00 balance

Answer 1

For this case we can calculate the growth factor first with this formula:

`GF=(1+(APR)/(12))=1+(0.09)/(12)=1.0075`

Then the savings are:

`S=M\cdot(GF)^(12)=150(1.0075)^(12)=164.071`