Solution to A bank pays you 4.5% interest per year. In addition, you receive |100 as bonus … - Sikademy
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Archangel Macsika

A bank pays you 4.5% interest per year. In addition, you receive |100 as bonus at the end of the year (after the interest is paid). Find a recurrence for the amount of money after n years if you invest |2000.

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The amount of money after 1 year


A_1=2000(1+0.045)+100

Let A_{n-1}= the amount of money after n-1 years, A_n= the amount of money after n years. Then


A_n=A_{n-1}(1+0.045)+100, n\geq2

A recurrence for the amount of money after n years 


A_1=2000(1+0.045)+100=2190

A_n=A_{n-1}(1+0.045)+100, n\geq2


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Question ID: mtid-5-stid-8-sqid-3191-qpid-1890