Find the savings plan balance after 8 months with an APR of 10% and monthly payments of $200

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#1

Find the savings plan balance after 8 months with an APR of 10% and monthly payments of $200. Please explain it to me! Not just looking for the answer!

Answer:

The correct answer is $1647.45!
P[(1+r/n)^nt -1 over(/) r/n is the formula

A=PMT*{[(1+int rate)^no of periods-1]/int rate}
A=200*{[[1+(0.1/12)]^8-1]/(0.1/12)
A=200*(127.177)
A=25435.49

FORMULA a=p(1+r∕100)^n
so here p = 20012=2400$
and annual rate is r=10% = 10/12% per month (1year=12month)
and time n= 8month
so here we would take n= 8,
so on solving these
a=2400(1+10∕12
100)^8
a=2400(1+1/10 * 12)^8-2400 +1600
$1647.45!

2nd method
take p=200*12=2400$
r=10%per annum
and n=8/12=2/3
and use above formula and solve it,

3rd method
take p=2400$
r= 10/3 per 4month
and n= 8month = 3 , 4month
and use above formula…
you can solve it by many methods, only you need to focus on rate and time, cause both should be in same unit.