# 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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