Question

Find the savings plan balance after 6 months with an APR of 2% and monthly payments of $250

Answer 1

The savings plan balance is $2700

Step-by-step explanation:

Given:

Time, t = 6 months

APR = 2%

Monthly payment, PMT = $250

Savings plan, A = ?

We know,

`A = PMT X ([(1 + (APR)/(n))^n^Y - 1 )/((APR)/(n) )`

Substituting the value in the equation we get,

`A = 250 X ([(1 + (0.02)/(6))^8 - 1] )/((0.02)/(8) ) \\\\A = 250 X (0.027)/(0.0025) \\\\A = 2700`

Therefore, the savings plan balance is $2700