Question

Find the savings plan balance after 12 months with apr of 9 percent monthly payment of 150.00 balance

Answer 1

Solution

For this case we can calculate the growth factor first with this formula:

$GF=(1+\frac{APR}{12})=1+\frac{0.09}{12}=1.0075$

Then the savings are:

$S=M\cdot(GF)^{12}=150(1.0075)^{12}=164.071$