Answer:
$ 2533.594
Step-by-step explanation:
The saving balance is found by the equation;
[tex]SV=P*[((1+i)^n -1)/i][/tex]
where P=monthly payments, i= interest rate n=period
Given ;
P= $250 n=9months and i=6%(0.04) per year, find savings balance?
Note than n is given in months so we divide the rate by 12 i.e
0.04/12 =0.003
Substitute values in the formulae;
SV= 250 × [((1+0.003)^9 - 1)/0.003)]
[tex]SV= 250* [((1+0.003)^9 -1 )/0.003]\\\\SV=250*[(1.003)^9 -1)/0.003]\\\\SV=250*[(1.0304 -1)/0.003]\\\\SV=250*[0.0304/0.003]\\\\SV=250*10.134\\\\SV=2533.594[/tex]
