Find the savings plan balance

Question

Find the savings plan balance after 18 months with an APR of 6% and monthly payments of $150.

Answer 1

A = PMT x [(1 + APR/n)^nY - 1]/(APR/n)

A = Accumulated savings

P = regular payment ($150)

APR = annual pct rate (decimal) (0.06)

n = no. payment periods/yr (12)

Y = no. of yrs (18 mos = 1.5 yrs)

A = 150 x [(1 + 0.06/12)^(12x1.5) - 1]/(0.06/12)

A = 150 x [1 + 0.005)¹⁸ - 1]/0.005

A = 150 x 0.09393/.005

A = 150 x 18.78579 ≅ $2817.87