explict formula and recursive formula

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tek

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Roberta had $1525 in savings account 2 years ago. what will be the value of her account 1 year from now, assuming that no deposits or withdrawls are made and the account earns 6.9% intrest compunded annually? Find the solution using both a recurise and explict formula.


okay this is my problem in my book it shows it goes in geometric sequence and i get that but i don't know what to plug into the formula.

thanks
 
tek said:
Roberta had $1525 in savings account 2 years ago. what will be the value of her account 1 year from now, assuming that no deposits or withdrawls are made and the account earns 6.9% intrest compunded annually? Find the solution using both a recurise and explict formula.


okay this is my problem in my book it shows it goes in geometric sequence and i get that but i don't know what to plug into the formula.

thanks
Click to expand...

For a recursive formula, you have this:

a<SUB>1</SUB> = 1525

a<SUB>n</SUB> = (a<SUB>n - 1</SUB>)*1.069

That's because the amount in one year is increased by 6.9% of the previous year, or is the previous year's amount multiplied by 100% + 6.9%, or 106.9%.
 
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