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ArbitrLikvidat [17]
3 years ago
14

Find the savings plan balance after 12 months with apr of 3% and monthly payments of $150

Mathematics
1 answer:
dimaraw [331]3 years ago
5 0
For monthly payments, monthly interest, i = APR/12=0.03/12=0.0025
Time period, n = 12
Monthly payment, A = $150

Future value
= A((1+i)^n-1)/i
= 150((1.0025^12-1)/.0025
= 1824.96 (to the nearest cent)
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So first we go down by 4, then up by 8, then down 16, then up 32, then finally down 64.  

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Notice it's the powers of 2:  

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Add 128 to the last term of 56 to get

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