Tuesday

January 27, 2015

January 27, 2015

Posted by **recurrence relation question** on Sunday, December 6, 2009 at 12:14pm.

a) the amount that he owes at the start of each month is taken to be the amount still owing just after the monthly repayment has been made.

So, let Un and Un+1 represent the amounts that he owes at the start of two successive months. write down a recurrence relation involving Un+1 and Un.

B) find the date and the amount of the final payment.

- mathmatics -
**Reiny**, Sunday, December 6, 2009 at 12:30pmlooks like they want you to do it step by step, what a bother.

Here is the actuarial mathematical way of doing it.

2500 = 300[1 - 1.015^-n]/.015

.

.

1.015^-n = .875

using logs

n = 8.9

So he needs 8 full payments of £300

outstanding balance just after making the 8th payment

= 2500(1.015)^8 - 300(1.015^8 - 1)/.015

=

= 286.38

(notice the 8.9 indicated we were very close to another payment of 300)

**Answer this Question**

**Related Questions**

sauce - a man deposits $8000 in his bank account.if the bank pays 8% compoud ...

Intrest - On Sept 14 Jennifer Rick went to park bank to borrow 2500.00 at 11 3/4...

simple intrest - ON September 14th Jennifer Rick went to a park bank to borrow ...

Simple Intrest - ON September 14th Jennifer Rick went to a park bank to borrow ...

Algebra 2 - A man is planning to invest up to $22,000in bank X or bank Y or both...

business mathemathics - sharry made a desposit of $860 to open a savings account...

Algebra 1 - Ms. Buxx invested a total of $2000 in two saving accounts. The first...

math - last year Jodie invested $10000, part at 6% anual intrest and the rest at...

Intrest - Carol Miller went to Europe and forgot to pay her 740 mortgage payment...

Intrest Problem - Carol Miller went to Europe and forgot to pay her 740.00 ...