Find the savings plan balance after 24 months with an APR of 2.5% and monthly payments of $400. Assume an ordinary annuity.

For an ordinary annuity, use the future value formula FV = PMT × [((1 + i)^n − 1) / i], where i is the monthly rate. Here, i = 0.025 / 12 and n = 24, so FV = 400 × [((1 + 0.025 / 12)^24 − 1) / (0.025 / 12)] ≈ $9,833.55. The balance is $9,833.55, choice B.

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