What is a savings plan Choose the correct answer below A A savings plan is a type of mutual fund that helps people pay off a debt over a long period of time B A savings plan is depositing a lump sum of money and letting it grow through the power of compound interest C A savings plan is depositing small amounts of money on a regular basis and letting the balance grow from the payments and interest OD A savings plan is a formula used to calculate the total return and annual return of savings at the end of each year Explain the savings plan formula Choose the correct answer below O A The savings plan formula calculates the accumulated savings plan balance as it grows because of the periodic deposits and interest It is used as a convenient alternative to making an extensive table of savings plan calculations OB The savings plan formula calculates the simple interest rate that the issuer promises to pay For example a coupon rate of 8 on a bond with a face value of 1000 means that the issuer will pay an interest of 8 x 1000 80 each year OC The savings plan formula is the annual percentage yield APY that would give the same overall growth over Y years It is used as a convenient alternative to making an extensive table of APY calculations OD The savings plan formula is used by banks to determine the right interest rate to give to a person who is looking to open a savings account