savings plan balance

Question

Find the savings plan balance after

1515

months with an APR of

44​%

and monthly payments of 

​$250250.

Answer 1

15 months at 4% APR with $250 monthly deposits. That's 1 year & 3 months = 5/4 = 1.25 years

That's 15x250 = $3,750 + interest, likely compounded monthly

Use the formula

A=PMT((1+r/n)^t -1)(n/r)

=250((1+.04/12)^15-1)(12./.04) = $3,838.78 rounded to nearest penny

interest = 3838.78-3750 = $88.78