Question

Find the savings plan balance after 1 year with an APR of 13% and monthly payments of $100. Assume an ordinary annuity. a. $1,271.18 c. $1,273.16 b. $1,272.17 d. $1,274.15

Answer 1

Prerequisites

A = accumulated savings plan balance

PMT = regular payment(deposit) amount

ARP = annual percentage rate(decimal)

n = number of payment periods per year

Y = number or years.

Savings Plan Formula

$A = PMT\frac{(1 + \frac{APR}{n})^{nY} - 1}{(\frac{APR}{n})}$

Step By Step Explanation

First, plugin what is known into the Savings Plan Formula

Second, solve the Savings Plan Formula

$A = PMT\frac{(1 + \frac{APR}{n})^{nY} - 1}{(\frac{APR}{n})}$

$A = 100\frac{(1 + \frac{.13}{12})^{12*1} - 1}{(\frac{.13}{12})}$

$A = 100\frac{(1 + \frac{.13}{12})^{12*1} - 1}{(\frac{.13}{12})} = 1274.1459$

Round $1274.1459

$1274.1459

$1274.15

Answer = d $1274.15

Answer 2

Answer:d 1274.15

Step-by-step explanation:math duh