You invest B, dollars in an account that draws interest at a monthly rate of r as a decimal, compounded monthly. After t months, the balance in dollars is given by the following. B- B,(1 + r)t (a) Let a denote the APR as a decimal. Then the monthly rate as a decimal is equal to a divided by 12. Express the balance in terms of the initial investment, the number of months, and the APR as a decimal. B(t) - (b) Let a denote the APR as a decimal, and let A denote the APR as a percentage. Then a is equal to A divided by 100. Express the balance in terms of the initial investment, the number of months, and the APR as a percentage. B(t) - (c) Note that y years is equivalent to 12y months. Express the balance in terms of the initial investment, the number y of years, and the APR as a percentage. B(y) =

You invest B, dollars in an account that draws interest at a monthly rate of r as a decimal, compounded monthly. After t months, the balance in dollars is given by the following. B- B,(1 + r)t (a) Let a denote the APR as a decimal. Then the monthly rate as a decimal is equal to a divided by 12. Express the balance in terms of the initial investment, the number of months, and the APR as a decimal. B(t) - (b) Let a denote the APR as a decimal, and let A denote the APR as a percentage. Then a is equal to A divided by 100. Express the balance in terms of the initial investment, the number of months, and the APR as a percentage. B(t) - (c) Note that y years is equivalent to 12y months. Express the balance in terms of the initial investment, the number y of years, and the APR as a percentage. B(y) =

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 10EB: You have been depositing money into an account yearly based on the following investment amounts,...

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