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Airida [17]
3 years ago
13

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

Mathematics
1 answer:
timofeeve [1]3 years ago
4 0

The savings plan balance is $2700

<u>Explanation:</u>

Given:

Time, t = 6 months

APR = 2%

Monthly payment, PMT = $250

Savings plan, A = ?

We know,

A = PMT X \frac{[(1 + \frac{APR}{n})^n^Y - 1 }{\frac{APR}{n} }

Substituting the value in the equation we get,

A = 250 X \frac{[(1 + \frac{0.02}{6})^8 - 1] }{\frac{0.02}{8} } \\\\A = 250 X \frac{0.027}{0.0025} \\\\A = 2700

Therefore, the savings plan balance is $2700

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