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

Question

asked May 21, 2021 160k views

1 Answer

Ibrahima · Answer 1 · 2021-05-26T15:24:43+0000

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