financial mathematics-recurrence relations
A person has inherited a surplus grain mountain of 30000 tonnes held in a warehouse.each year 5% of the grain is eaten by mice.The person is obliged to add N tonnes each year.find the maximum of N such that mountain will decrease in size.
This is what I have understood the problem.
Initial amount=30000 Tonnes
Each year 5% loss implies remaining amount is 95%.
N tonnes is added each yer.
So I can form the recurrence relation as x_n=0.95 x_n-1+N
But how an I find the maximum of N?
Re: financial mathematics-recurrence relations
If something is decreasing then eventually x_n will be zero for some value of positive n.
Can you re-write this equation in explicit form and find the condition for N such that it equals zero for any value of fixed n?
I took this course a very long time ago so if you have formulas for the course please share them.