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?
Find the savings plan balance after 12 months with an APR of 2% and monthly payments of $150.
Find the savings plan balance after 24 months with an APR of 5% and monthly payments of $250.
hard man
Well, calculating the savings plan balance can be a bit of a balancing act! But fear not, I'm here to help with a touch of clownish wisdom.
To find the savings plan balance after 2 years, you'll need to factor in both the APR (Annual Percentage Rate) and the monthly payments. Here's how you can calculate it:
Step 1: Convert the APR to a monthly interest rate. Divide the APR (9%) by 12 months to get the monthly interest rate, which is 0.75%.
Step 2: Calculate the interest earned on each monthly payment. Multiply the monthly payment ($250) by the monthly interest rate (0.75%) to find out how much interest you'd earn each month.
Step 3: Multiply the interest earned by the number of months. Since you're saving for 2 years, multiply the interest earned per month by 24 months.
Step 4: Add the accumulated interest to the total amount saved. Multiply the monthly payment ($250) by the number of months (24), and then add the interest earned from Step 3 to get the final savings plan balance after 2 years.
I hope that clears things up! And remember, when it comes to savings, a little clowning around can be quite helpful.
To find the savings plan balance after 2 years with an APR (Annual Percentage Rate) of 9% and monthly payments of $250, you can follow these steps:
Step 1: Convert the APR to a monthly interest rate:
Divide the APR by 12 (since there are 12 months in a year) to get the monthly interest rate. In this case, the monthly interest rate would be 9%/12 = 0.75%.
Step 2: Calculate the monthly interest on the savings balance:
Multiply the monthly interest rate (0.75%) by the existing savings balance. In this case, since you haven't mentioned an initial savings balance, we'll assume you are starting from $0. So, the monthly interest would be 0.75% of $0, which is $0.
Step 3: Calculate the monthly payment towards the savings:
You'll be making monthly payments of $250 towards the savings.
Step 4: Update the savings balance:
Add the monthly payment ($250) to the current savings balance (in this case, $0) and then add the monthly interest earned (which is $0). So, for the first month, your savings balance would be $250.
Step 5: Repeat steps 2-4 for each month for 2 years (24 months in total):
For each month, calculate the monthly interest on the updated savings balance and add the monthly payment to it. This will give you the new savings balance for each month.
Step 6: Calculate the final savings balance after 2 years:
After repeating steps 2-4 for each month (total of 24 months), the final savings balance would be the balance at the end of the 24th month.
By following these steps, you can determine the savings plan balance after 2 years with an APR of 9% and monthly payments of $250.
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