Calculate the balance under the given assumptions.
-Find the savings plan balance after 17 months with an APR of 3% and monthly payments of $370.

Question

Quizplus · Accepted Answer

The savings plan balance can be calculated using the formula for the future value of a series: $FV = P \times \frac{(1 + r)^n - 1}{r}$, where $P$ is the monthly payment, $r$ is the monthly interest rate, and $n$ is the number of payments. Given an APR of 3%, the monthly interest rate is $0.03/12 = 0.0025$, and with 17 monthly payments of $370, the formula becomes: $FV = 370 \times \frac{(1 + 0.0025)^{17} - 1}{0.0025}$, which calculates to approximately $6417.39.

Calculate the Balance Under the Given Assumptions