Recurrence relations: compound interest & depreciation

Are geometric sequences...

• Linear

• Non-linear

When R<1 there is

• Geometric Growth

• Geometric Decay

An investment of $6000 earns compounding interest at the rate of 4.2% per annum. A recurrence relation that can be used to model the value of the investment after n

n years is shown below.

V₀=6000,V_n+1=1.042Vn

In the recurrence relation,Vn, is the value of the investment after n years.

Find the value of the investment after 1 year

An investment of $6000 earns compounding interest at the rate of 4.2% per annum. A recurrence relation that can be used to model the value of the investment after n

n years is shown below.

V₀=6000,V_n+1=1.042Vn

In the recurrence relation,Vn, is the value of the investment after n years.

Find the value of the investment after 2 years to nearest cent

An investment of $6000 earns compounding interest at the rate of 4.2% per annum. A recurrence relation that can be used to model the value of the investment after n

n years is shown below.

V₀=6000,V_n+1=1.042Vn

In the recurrence relation,Vn, is the value of the investment after n years.

Find the value of the investment after 3 years to nearest cent

An investment of $6000 earns compounding interest at the rate of 4.2% per annum. A recurrence relation that can be used to model the value of the investment after n

n years is shown below.

V₀=6000,V_n+1=1.042Vn

In the recurrence relation,Vn, is the value of the investment after n years.

Determine how many years it takes for the value of the investment to first exceed $8000

What is the ratio (R) with an investment of $5000 at a compounding interest rate of 6.8% per annum

Owen invests $7600 with a bank. He will be paid interest at the rate of 6% per annum, compounding monthly. What is the ratio (R)?

If you get 1.06 as an answer then this is incorrect, call me!

Owen invests $7600 with a bank. He will be paid interest at the rate of 6% per annum, compounding monthly. How much money with Owen have in his account after 2 months?

Owen invests $7600 with a bank. He will be paid interest at the rate of 6% per annum, compounding monthly. How much interest would Owen earn in 5 months? Correct to the nearest cent