Find the savings plan balance after 

3

years with an APR of 4% and monthly payments of 

​$150.

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Part 1

The balance is 

​$enter your response here. 

​(Do not round until the final answer. Then round to the nearest cent as​ needed.)

To find the savings plan balance after 3 years with an APR (Annual Percentage Rate) of 4% and monthly payments of $150, we will use the formula for the future value of an ordinary annuity, since payments are made at the end of each period (month).

The formula for the future value $ FV $ of an ordinary annuity is:

\[
FV = P \times \left(\frac{(1 + r)^n - 1}{r}\right)
\]

Where:
- $ P $ is the monthly payment ($150 in this case)
- $ r $ is the monthly interest rate (APR divided by 12)
- $ n $ is the total number of payments (number of months)

### Step 1: Identify the given values
- Monthly payment $ P = 150 $
- APR = 4%, so the monthly interest rate $ r = \frac{4\%}{12} = \frac{0.04}{12} \approx 0.003333 $
- Number of months $ n = 3 \times 12 = 36 $

Now, we can plug these values into the formula and calculate the future value. Let’s do the calculation.The savings plan balance after 3 years with an APR of 4% and monthly payments of $150 will be approximately **$5727.23**.

Do you have any questions or would you like more details?

Here are 5 related questions for further practice:

1. What would be the balance if the payments were $200 per month instead?
2. How much interest is earned over the 3 years?
3. What would the balance be if the APR was 5% instead of 4%?
4. How much would you save in total if the payments were made for 5 years instead?
5. What is the difference in total balance if payments are made at the beginning of each month instead of the end?

**Tip:** Always ensure you convert the annual interest rate to a monthly rate when dealing with monthly payments.

Find the savings plan balance after 3 years with an APR of 4% and monthly payments of $150. The balance is $enter your response here. (Do not round until the final answer. Then round to the nearest cent as needed.)

Find out how to calculate the savings plan balance after 3 years with an APR of 4% and monthly payments of $150. This step-by-step solution uses the future value of an ordinary annuity formula, suitable for students in Grades 10-12.

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