Recurrence relation-compound interest

Reference no: EM13131376

1. Pauline takes a loan of S dollars at an interest rate of r percent per month, compounded monthly. She plans to repay the loan in T equal monthly installments of P dollars each.

a) Let a(subscript n) denote the amount Pauline owes on the loan after n months. Write a recurrence relation for a (subscript n).

b) Solve the recurrence relation that you obtained in a), above.

c) Use your answer from b) to obtain a formula for the monthly payment, P.

Reference no: EM13131376

Questions Cloud

Audience and purpose : You have considered your audience and purpose (from the LP1 assignment) for your final proposal paper, this week you are going to narrow down a specific topic and write your ideas

End of the current fiscal year : The balance sheet for Chaney Resources Inc. at the end of the current fiscal year indicated the following:

Illustrate what effect does loss have on taxable income : Assume the original facts except that they also incurred a loss of $5,000 on the sale of some of their investment assets. Illustrate what effect does the $5,000 loss have on their taxable income?

Discuss the idea of tone at the top : Discuss how an auditor may go about evaluating the effectiveness of the internal controls of a company.

Recurrence relation-compound interest : Pauline takes a loan of S dollars at an interest rate of r percent per month, compounded monthly. She plans to repay the loan in T equal monthly installments of P dollars each.

Probability that only one of them is able to use spreadsheet : If one man and one woman are chosen randomly from the company, what is the probability that only one of them is able to use a spreadsheet?

Informative speech requirements : Prepare a detailed and complete sentence PREPARATION OUTLINE and drop in drop box by the deadline.

Comparative income statement for fiscal years : Prepare a comparative income statement for fiscal years 2003 and 2004 in vertical form, starting each item as a percent of revenues. Round to one decimal place.

Will this shift income from bendetta to jenine : Bendetta instructs her tenants to send their rent checks to Jenine so Jenine can report the rental income. Will this shift income from Bendetta to Jenine? Why, or why not?

User Account

All Pages