Find a recurrence relation for the balance B(k) owed at

Chapter 1, Problem 23E

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QUESTION:

Problem 23E

Find a recurrence relation for the balance B(k) owed at the end of k  months on a loan of $5000 at a rate of7%if a payment of $100 is made each month. [Hint: Express B(k) in terms of B(k – 1); the monthly interest is (0.07/12)B(k – 1).]

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QUESTION:

Problem 23E

Find a recurrence relation for the balance B(k) owed at the end of k  months on a loan of $5000 at a rate of7%if a payment of $100 is made each month. [Hint: Express B(k) in terms of B(k – 1); the monthly interest is (0.07/12)B(k – 1).]

ANSWER:

SOLUTION

Step 1

In this problem we are asked to find a recurrence relation for the balance  owed at the end of k  months on a loan of $5000 at a rate of7%if a payment of $100 is made each month.

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