The savings plan balance is $2700
Explanation:
Given:
Time, t = 6 months
APR = 2%
Monthly payment, PMT = $250
Savings plan, A = ?
We know,
[tex]A = PMT X \frac{[(1 + \frac{APR}{n})^n^Y - 1 }{\frac{APR}{n} }[/tex]
Substituting the value in the equation we get,
[tex]A = 250 X \frac{[(1 + \frac{0.02}{6})^8 - 1] }{\frac{0.02}{8} } \\\\A = 250 X \frac{0.027}{0.0025} \\\\A = 2700[/tex]
Therefore, the savings plan balance is $2700
