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Question
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
VerifiedStep 1
1 of 4Given:
(a) Let represents the amount in the account at the end of years.
Each year 9% interest is added to the account. Thus the amount in the account is the amount of the previous year increased by 9% of the amount of the previous year.
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