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Anit [1.1K]
2 years ago
6

Find the savings plan balance after 12 12 months with an apr of 8 8​% and monthly payments of ​$ 100 100.

Mathematics
1 answer:
ella [17]2 years ago
6 0
Assume first payment is at the end of the first month.

APR=8% per annum = 0.08/12 per month
n=12 months
Monthly payment, A = $100

Future value 
F=\frac{A((1+i)^n-1)}{i}
=\frac{100((1+0.066/12)^12-1)}{0.066/12}
=6.803356/0.0055
=1236.97
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