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: How much money will you have saved in a years time? How much will be interest? Why wouldnt a linear model work here?