Question

Find the savings plan after 9 months with an APR of 7% and monthly payments if $250

Answer 1

$ 2303.22

Explanation:

We can calculate the balance using the following formula:

`\text{FVA = }\frac{\text{PMT}\cdot((1+r)^n-1)}{r}`

Given:

n = 9 months

r = 7%/12 = 0.07/12

PMT = 250

Plug in the numbers and solve for FVA

`\begin{gathered} \text{FVA = }(250\cdot((1+(0.07)/(12))^9-1))/((0.07)/(12)) \\ \text{FVA =}2303.22 \end{gathered}`

The balance is $ 2303.22