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A person deposits $1000 in an account that yields 9%

Discrete Mathematics and Its Applications | 7th Edition | ISBN: 9780073383095 | Authors: Kenneth Rosen ISBN: 9780073383095 37

Solution for problem 18E Chapter 2.4

Discrete Mathematics and Its Applications | 7th Edition

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Discrete Mathematics and Its Applications | 7th Edition | ISBN: 9780073383095 | Authors: Kenneth Rosen

Discrete Mathematics and Its Applications | 7th Edition

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Problem 18E

A person deposits $1000 in an account that yields 9% interest compounded annually.

a) Set up a recurrence relation for the amount in the account at the end of n years.

b) Find an explicit formula for the amount in the account at the end of n years.

c) How much money will the account contain after 100 years?

Step-by-Step Solution:

Problem 18E

A person deposits $1000 in an account that yields 9% interest compounded annually.

a) Set up a recurrence relation for the amount in the account at the end of n years.

b) Find an explicit formula for the amount in the account at the end of n years.

c) How much money will the account contain after 100 years?

Step 1:

In this problem, we have to set up a recurrence relation and we have to find the explicit formula for the deposit 1000$ by a person in an account that yields 9% interest compounded annually.

Step 2:

(a): we have to set up a recurrence relation for the amount in the account that yields 9% interest at the end of n years.

Here interest rate 9% in decimal form is 0.09

Now let an represent the amount after n years, then

                 an = an-1 + 0.09an-1 

                   an = 1.09an-1

Here a0 = 1000.

Problem 18E

A person deposits $1000 in an account that yields 9% interest compounded annually.

a) Set up a recurrence relation for the amount in the account at the end of n years.

b) Find an explicit formula for the amount in the account at the end of n years.

c) How much money will the account contain after 100 years?

Step 1:

In this problem, we have to set up a recurrence relation and we have to find the explicit formula for the deposit 1000$ by a person in an account that yields 9% interest compounded annually.

Step 2 of 2

Chapter 2.4, Problem 18E is Solved
Textbook: Discrete Mathematics and Its Applications
Edition: 7
Author: Kenneth Rosen
ISBN: 9780073383095

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A person deposits $1000 in an account that yields 9%

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