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Find the accurate answer of all parts of the given problem
Problem- A loan begins with a balance of P dollars. At the end of each month, interest at the rate of r annually is added to the account and then S dollars is deducted (this is an installment loan).
Part 1- Find a recurrence relation for Pn' the balance after n months has passed. (noteP0=P).
Part 2- Show that Pn=P( 1 + r/12) - 12S/r (( 1 + r/12)n - 1) is an explicit formula for Pn
Part 3- Solve the equation in part b for S and use it to find the payment required for a 5 year, #30000 car loan with an interest rate of 9%. (Find S when P60 = 0)
I need assistance to determine the answer of the above problem.
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