Round all answers to two decimal places unless otherwise indicated.
Investment Balance You invest
B
0
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
B
=
B
0
(
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 initial investment, the number of months, and the APR as a decimal.
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 initial investment, the number of months, and the APR as a percentage.
c. Note that
y
years is equivalent to
12
y
months. Express the balance in terms of the initial investment, the number
y
of years, and the APR as a percentage.