Suppose you deposit D dollars at the beginning of each month into an account that pays a monthly rate of r as a decimal. Then, the balance B of the account after t months is given by B = D(1 + r)   (1 + r)t − 1 r  dollars.   Suppose you deposit $160 at the beginning of each month into an account that pays a monthly rate of  r = 0.005,  which corresponds to an APR of 6%. How long does it take for the account balance to build to $2600? Report your answer to the nearest whole month.  months

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 36P
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Suppose you deposit D dollars at the beginning of each month into an account that pays a monthly rate of r as a decimal. Then, the balance B of the account after t months is given by

B = D(1 + r)
 
(1 + r)t − 1
r
 
dollars.
 
Suppose you deposit $160 at the beginning of each month into an account that pays a monthly rate of 
r = 0.005,
 which corresponds to an APR of 6%. How long does it take for the account balance to build to $2600? Report your answer to the nearest whole month.
 months
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