Find the savings plan balance after 8 years with an APR of 4% and monthly payments of $334.
To find the savings plan balance after 8 years with an APR of 4% and monthly payments of $334, we can use the formula for the future value of an ordinary annuity:
FV = P * ((1 + r)^n - 1) / r
Where FV is the future value, P is the monthly payment, r is the monthly interest rate, and n is the number of months.
First, let's calculate the monthly interest rate. Since the APR is 4%, the monthly interest rate would be 4% / 12 = 0.04 / 12 = 0.00333.
Next, let's determine the number of months. Since the duration is 8 years, we have 8 years * 12 months/year = 96 months.
Now we can substitute the values into the formula and calculate the future value:
FV = $334 * ((1 + 0.00333)^96 - 1) / 0.00333
Using a calculator, the future value is approximately $32,967.18
Therefore, the savings plan balance after 8 years would be approximately $32,967.18.