Question

The balnce B(n+1), in mr. smith's savings account at the end of a year is caculated by the equation B(n+1)=(1.065)Bn, where Bn,= is the balance at the end of the prievious year. Mr. smith made a deposit to open the account 4 years ago. He has not made any withdrawls since. the balance at the end of 2 years was $1701.34. what is the balance at the end of 4 years. Help!!!

Answer 1

Well, there are a few ways to do this; what have you tried?

Answer 2

I have tried to use this weird equation they gave me but i dont understand it.

Answer 3

check on boobears question amistre

Answer 4

B(n+1)=(1.065)Bn

4 years ago was B(0)
2 years ago B(2) = 1701.34

Answer 5

the recursion equation, or difference equation, is just a way to feed in a previous amount

Answer 6

so if it is 4 years later its B(4) ?

Answer 7

that 1.065 means that he has an interest rate of 6.5% compounded each year

Answer 8

yes; but I spoose I should have had the starting year as B(1); Balance(in the first year)

Answer 9

we can work out some simple algebra; but this really just takes the form of a geometric sequence

Answer 10

? im not in geometry

Answer 11

B(2) = 1701.34

B(3) = (1.065) * B(2); B(3) = (1.065)(1701.34) right?

Answer 12

lol.... geometric just means that it is multiplied each time instead of added

Answer 13

mmmm.... okay
what steps would you take to solve this

Answer 14

B(4) = (1.065) * B(3) ; and we just determined B(3) so lets fill it in

Answer 15

B(4) = (1.065) * (1.065) * (1701.34)

Answer 16

B(4) = abt. 1929.70....

Answer 17

thats one of the answers so i am going say that is right

Answer 18

thankS

Answer 19

yay!! :) but do you understand better how I got to it?

Answer 20

Some what

Answer 21

if you practice, youll get it :) good luck