in Chapter 1 of the text we looked at calculating a monthly payment for a loan.A related formula is to calculate the amount accruing when regular payments are made into an interest bearing account - often called the Savings Plan formula.

(A is the accrued amount after t years of making regular payments, PMT, into an account at interest rate, r%, compounded n times each year.)

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

=PMT*((1 + r/N)^(N*t) - 1)/(r/N)

The second version is essentially in the form used in Excel

Suppose you want to buy a car and have decided that you can save $100 a month.Using information from an internet source, determine the current interest rate on savings accounts and use the information to answer the following:

1. How much money will you have saved in a year's time?
2. How much will be interest?
3. Why wouldn't a linear model work here?

post per the instructor:

(The formula given in the DQ is REQUIRED to be used in your answer and for the project. One of the objectives of this class is for you to learn to use EXCEL.Therefore, you are required to use EXCEL to compute the values needed and attach the spreadsheet.This also allows you to show your work, as required, in a compact form since the formulas will be in the cells used in the computations.This post is for additional information only.)

There is no other information please.