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A person deposits $1000 in an account that yields 9%
Chapter 1, Problem 18E(choose chapter or problem)
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?
Questions & Answers
QUESTION:
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?
ANSWER:
Problem 18E
A person deposits $1000 in an account that yields 9% interest compounded annually.
a) Set up a recurrence relation for the amount in the account at the end of n years.
b) Find an explicit formula for the amount in the account at the end of n years.
c) How much money will the account contain after 100 years?
Solution:
Step 1:
In this problem, we have to set up a recurrence relation and we have to find the explicit formula for the deposit 1000$ by a person in an account that yields 9% interest compounded annually.