Find the savings plan balance after 9 months with an APR of 12% and monthly payments of $300. Assume an ordinary annuity.

Question

Mathematics

Kaeden Wu

6 January, 22:14

Find the savings plan balance after 9 months with an APR of 12% and monthly payments of $300. Assume an ordinary annuity.

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Answers (1)

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Braedon Carey · Answer 1

Given:

n = 9 months

i = 12%

A (monthly payments) = 300

Assume an ordinary annuity.

Required: P

Solution:

F = A {[ (1+i) ^n] - 1 / i}

F = 300 {[ (1.12) ^9 - 1 / 0.12}

F = 4,432.7