Find the savings plan balance after 6 months with an APR of 7​% and monthly payments of ​$250.

Question

Thanks for the help! I appreciate it.

Answer 1

S = P[1 + (1+i) + ... + (1+i)⁵] = [(1+i)⁶ - 1]}/i

 

First of all you must decide what is the monthly interest rate...I would prefer to say that in the above formula

i = (1.07)^1/12 - 1, but other will define it differently.  Also this formula assumes that money is deposited at the beginning of the month and interest is credited at the end of the month.  Of course P = 250 for your problem.  I will leave the numerical calculation to you.