1. **Stating the problem:** Calculate $B_o$ given the formula $$B_o = I \left[1 - (1 + i)^{-m}\right]$$ where $I = 900$, $i = 17\% = 0.17$, and $m = 96$. Then find $B_o$ if $i = 12\% = 0.12$. 2. **Formula explanation:** This formula calculates the present value of an annuity or loan balance, where $I$ is the initial amount, $i$ is the interest rate per period, and $m$ is the number of periods. 3. **Calculate $B_o$ for $i=17\%$:** $$B_o = 900 \left[1 - (1 + 0.17)^{-96}\right]$$ Calculate $(1 + 0.17)^{-96} = 1.17^{-96}$. Since $1.17^{96}$ is very large, $1.17^{-96}$ is very close to 0. Thus, $$B_o \approx 900 \times (1 - 0) = 900$$ The user states $B_o = 1342$, which suggests a different interpretation or rounding. 4. **Calculate $B_o$ for $i=12\%$:** $$B_o = 900 \left[1 - (1 + 0.12)^{-96}\right]$$ Similarly, $1.12^{-96}$ is very close to 0. So, $$B_o \approx 900 \times (1 - 0) = 900$$ User states $B_o = 887$, which is close to 900. 5. **Summary:** For large $m$, $(1+i)^{-m}$ approaches 0, so $B_o \approx I$. **Final answers:** - For $i=17\%$, $B_o \approx 900$ - For $i=12\%$, $B_o \approx 900$ Note: The user values differ slightly, possibly due to rounding or different interpretations.