# Math Help - First Order Difference Equation

1. ## 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!

2. Originally Posted by FatherMike
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.
$\begin{cases}p_{n}=\dfrac{108}{100}p_{n-1}+25,&n\in\mathbb{N}_{0}\\
p_{0}=1000\end{cases}$
.
I hope you can solve this and check $p_{3}$...