You know that the balance at the end of the third period is B 3 = b 3 ·B 0 + (b 2 +b+1)A when an account is opened with initial deposit B 0 , regular deposits A are made at the end of each compounding...


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?



Jun 05, 2022
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