Math

posted by chris

Find the savings plan balance after 2 years with an APR of 9​% and monthly payments of ​$250

Can someone help me? Idk if im right but do I multiply $250 by 9% an then divide?

  1. Reiny

    oh my!

    you will need the ordinary annuity formula
    amount = payment( (1+i)^n - 1)/i
    where i is the periodic interest rate as a decimal, and n is the number of interest periods

    so i = .09/12 = .0075
    n = 2(12) = 24

    amount = 250( 1.0075^24 - 1)/.0075
    = $6,547.12

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