Results 1 to 3 of 3

Math Help - Recurrence relation for amount in account at end of n years if no money withdrawn.

  1. #1
    Newbie
    Joined
    Mar 2011
    Posts
    1

    Recurrence relation for amount in account at end of n years if no money withdrawn.

    A deposit of 50000 O.R.is maid to an investment fund at the beginning of a year.On the last day of each year two dividends are awarded.The first dividend is 20% of the amount in the account during that year. The second dividend is 45% of the amount in the account in the previous year.

    (a)Find a recurrence relation for {pn}, where pn is the amount in the account at the end of n years if no money is ever withdrawn.

    hope someone can help me, and thanks in advance.
    Last edited by mr fantastic; March 26th 2011 at 04:35 PM. Reason: Re-titled.
    Follow Math Help Forum on Facebook and Google+

  2. #2
    MHF Contributor
    Joined
    May 2010
    Posts
    1,030
    Thanks
    28
    You didn't specify where you were stuck, so i'll assume its at the first step.

    The amount of money at the end of year n is going to be the amount of money at the end of the previous year + dividends received in that year.
    Follow Math Help Forum on Facebook and Google+

  3. #3
    Grand Panjandrum
    Joined
    Nov 2005
    From
    someplace
    Posts
    14,972
    Thanks
    4
    Quote Originally Posted by mujix View Post
    A deposit of 50000 O.R.is maid to an investment fund at the beginning of a year.On the last day of each year two dividends are awarded.The first dividend is 20% of the amount in the account during that year. The second dividend is 45% of the amount in the account in the previous year.

    (a)Find a recurrence relation for {pn}, where pn is the amount in the account at the end of n years if no money is ever withdrawn.

    hope someone can help me, and thanks in advance.
    Let $$p_n be the amount in the account at the end of the $$n th year.

    Now you need to write $$p_{n+1} in terms of $$p_n and $$p_{n-1}.

    Try that let us know how you get on and what problems you are still having.

    CB
    Follow Math Help Forum on Facebook and Google+

Similar Math Help Forum Discussions

  1. Saving money paying off a home loan in under 10 years
    Posted in the Business Math Forum
    Replies: 12
    Last Post: August 2nd 2012, 11:44 AM
  2. Replies: 7
    Last Post: October 22nd 2011, 09:15 AM
  3. Accumulated Amount of Money
    Posted in the Business Math Forum
    Replies: 1
    Last Post: December 3rd 2008, 07:41 PM
  4. Find amount of money
    Posted in the Algebra Forum
    Replies: 1
    Last Post: March 28th 2007, 07:17 PM
  5. Amount at the end of 4 years?
    Posted in the Business Math Forum
    Replies: 5
    Last Post: July 13th 2006, 01:55 PM

Search Tags


/mathhelpforum @mathhelpforum