# Math

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. 👍 1
2. 👎 2
3. 👁 3,825
1. 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

1. 👍 2
2. 👎 3
2. Find the savings plan balance after 24 months with an APR of 5% and monthly payments of \$250.

1. 👍 1
2. 👎 1

## Similar Questions

1. ### math

Raj is deciding between two cell phone plans, A and B, which are both linear functions. The monthly charge for plan A according to the number of minutes used is shown in the table. Monthly Charge for Plan A Minutes used, x Monthly

2. ### Financial

You need a 30-year, fixed-rate mortgage to buy a new home for \$235,000. Your mortgage bank will lend you the money at an APR of 5.35 percent for this 360-month loan. However, you can afford monthly payments of only \$925, so you

3. ### Finance

You take out a 30-year \$100,000 mortgage loan with an APR of 6 percent and monthly payments. In 12 years you decide to sell your house and pay off the mortgage. What is the principal balance on the loan? I am working this on the

4. ### Math

Sarah secured a bank loan of \$155,000 for the purchase of a house. The mortgage is to be amortized through monthly payments for a term of 15 years, with an interest rate of 3%/year compounded monthly on the unpaid balance. She

1. ### MATH

Buford pays for a \$4000.00 vacation with a credit card that has a 20% APR. He decides to make \$200.00 monthly payments. What is the total amount of interest and fees based on the APR?

2. ### Math

Consider the two savings plans below. Compare the balances in each plan after 7 years. Which person deposited more money in the​ plan? Which of the two investment strategies is​ better? Yolanda deposits ​\$550 per month in an

3. ### Finance

You take out a 30-year \$100,000 mortgage loan with an APR of 6 percent and monthly payments. In 12 years you decide to sell your house and pay off the mortgage. What is the principal balance on the loan?

4. ### Precalculus

you borrow \$5,000 from your parents to purchase a used car. The arrangements of the loan are such that you make payments of \$250 per month toward the balance plus 1% interest on the unpaid balance from the previous month. (a) Find

Mr Jones intends to retire in 20 years at the age of 65. As yet he has not provided for retirement income, and he wants to set up a periodic savings plan to do this. If he makes equal annual payments into savings account that pays

2. ### Math

Mary B deposits \$8500 into a savings account, compounded monthly at a nominal interest rate of 9 percent, as part of a savings plan that she would like to undertake in 5 years. 1) What is the effective interest rate per annum? 2)

3. ### math

If an individual saves​ \$5,700 and elects to place the total dollar amount into a savings account earning​ 2.75% APR compounded​ monthly, how much will the original deposit grow to in 12​ years?

4. ### Math

Suppose you take out a 45​-year ​\$100,000 mortgage with an APR of 6​%. You make payments for 2 years ​(24 monthly​ payments) and then consider refinancing the original loan. The new loan would have a term of 20 ​years,