Find the savings plan balance after 33 years with an APR of 9% and monthly payments of $200
i = .09/12 = .0075
n = 33(12) = 396
What is 200(1.0075^396 - 1)/.0075 ?
To find the savings plan balance after 33 years with an Annual Percentage Rate (APR) of 9% and monthly payments of $200, you can use the future value formula for an ordinary annuity.
The future value formula for an ordinary annuity is:
FV = P * ((1 + r)^n - 1) / r
Where:
FV is the future value of the savings plan
P is the monthly payment amount
r is the monthly interest rate
n is the total number of payments
First, let's convert the annual interest rate to a monthly interest rate.
Monthly interest rate = APR / (12 * 100)
For an APR of 9%, the monthly interest rate would be:
Monthly interest rate = 9 / (12 * 100) = 0.0075
Next, we need to calculate the total number of payments.
Total number of payments = number of years * 12
For 33 years, the total number of payments would be:
Total number of payments = 33 * 12 = 396
Now we can plug these values into the future value formula:
FV = 200 * ((1 + 0.0075)^396 - 1) / 0.0075
Calculating this using a calculator or a spreadsheet, you will get the savings plan balance after 33 years with an APR of 9% and monthly payments of $200.