A deposit of P dollars is made at the beginning of each month into an account earning an annual interest rate r, compounded monthly. The balance of money a after t years in the account is represented by:
A = P(1+r/12) + P (1+r/12)^2 + ...+ P(1+r/12)^12t
Show that the balance is A =P[(1+r/12)^12t - 1] (1+12/r)
A = P(1+r/12) + P (1+r/12)^2 + ...+ P(1+r/12)^12t
Show that the balance is A =P[(1+r/12)^12t - 1] (1+12/r)