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Math Help - First Order Difference Equation

  1. #1
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    First Order Difference Equation

    One deposits $1000 in an account paying interest at a rate of 8% compounded monthly and makes additional deposits of $25 a month. What is the balance of this account after 3 years.

    I'm just a little lost at setting up the equation. Any suggestions would be great. Thanks again!
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  2. #2
    Senior Member bkarpuz's Avatar
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    Quote Originally Posted by FatherMike View Post
    One deposits $1000 in an account paying interest at a rate of 8% compounded monthly and makes additional deposits of $25 a month. What is the balance of this account after 3 years.

    I'm just a little lost at setting up the equation. Any suggestions would be great. Thanks again!
    Let me try to give a hand.
    \begin{cases}p_{n}=\dfrac{108}{100}p_{n-1}+25,&n\in\mathbb{N}_{0}\\<br />
p_{0}=1000\end{cases}.
    I hope you can solve this and check p_{3}...
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