A debt of $10,000 is to be amortized by equal payments of $400 at the end of each month, plus a final payment after the last $400 payment is made. If the interest is at the rate of 1% compounded monthly (the same as an annual rate of 12% compounded monthly),
i. Write a discrete dynamical system that models the situation.
ii. Construct a table showing the amortization schedule for the required payments.
iii. Find a solution for the system.

Question

A debt of $10,000 is to be amortized by equal payments of $400 at the end of each month, plus a final payment after the last $400 payment is made. If the interest is at the rate of 1% compounded monthly (the same as an annual rate of 12% compounded monthly), 
i.	Write a discrete dynamical system that models the situation. 
ii.	Construct a table showing the amortization schedule for the required payments. 
iii.	Find a solution for the system.

anonymous · Answer

would it be $$A _{n}=10,000(1+ r)^{n-1}-400$$