You know that the balance at the end of the third period is B3= b3·B0+ (b2+b+1)A when an account is opened with initial deposit B0, regular deposits A are made at the end of each compounding period, the period interest rate is r , and b=1+r
. Starting from B4= B3+ rB3+ A , you should be able to obtain a formula for B4of the form B4= b4·B0+ (Missing terms)·A
. What are the missing terms inside the parentheses?
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