# Pauline and her insurance scheme...

• Apr 16th 2010, 01:41 PM
rhysiboy
Pauline and her insurance scheme...
Hi, was just wondering if anyone could help me with a few questions, had a look all through my notes and there doesn't seem to be anything that I can use in these situations (there probably is, but you know when you get stuck you just cant seem to think it through straight!)

okay, so

C2:
6 The ammount of money which Pauline pays into and insurance scheme is recorded each day. The ammount which pauline pays in during the nth year is £Aη. The first three values of Aη are given by:

A1=800 A2=650 A3=530

The recorded amounts may be modelled by a law of the form

Aη+1=pAη+q

Where p and q are constants
a) Find the value of p and the value of q
b) Find the limiting value £V using and equation for V
• Apr 16th 2010, 07:36 PM
TKHunny
So, 650 = p*800 + q
and 530 = p*650 + q

What's next?
• Apr 17th 2010, 12:40 PM
rhysiboy
Quote:

Originally Posted by TKHunny
So, 650 = p*800 + q
and 530 = p*650 + q

What's next?

Okay so from there I can take the equation 530 = p*650 + q from 650 = p*800 + q, meaning that I will be left with just P=xyz, then sub p back into the original (Happy) thank you very much!