Question

Suppose on December 31, 2000, a deposit of $100 is made in a savings account that pays 10% annual interest (Ah, those were the days!). So one year after the initial deposit, on December 31, 2001, the account will be credited with $10, and have a value of $110. On December 31, 2002 that account will be credited with an additional $11, and have value $121. Find a recursive relation that gives the value of the account n years after the initial deposit.

Answer 1

\[a_0=100\]

Answer 2

\[a_1=(a_0)(1.01)\]

Answer 3

\[a_2=a_1*(1.01)\]

Answer 4

\[a_n=a_{n-1}(1.01)\]

Answer 5

Thank you so much for your help.
So you figured that out by simply looking at the relationship between a particular instance and the one before it?

Answer 6

yes, that's what I did

Answer 7

Awesome!
Now I get it. Hahahaha it's so easy!