Ken has opened a savings account to save money to buy a new caravan.
The amount of money in the savings account after `n` years, `V_n`, can be modelled by the recurrence relation shown below.
`V_0 = 15000, qquad qquad qquad V_(n + 1) = 1.04 xx V_n`
- How much money did Ken initially deposit into the savings account? (1 mark)
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- Use recursion to write down calculations that show that the amount of money in Ken’s savings account after two years, `V_2`, will be $16 224. (1 mark)
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- What is the annual percentage compound interest rate for this savings account? (1 mark)
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- The amount of money in the account after `n` years, `Vn` , can also be determined using a rule.
i. Complete the rule below by writing the appropriate numbers in the boxes provided. (1 mark)
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`V_n =` `^n xx` - ii. How much money will be in Ken’s savings account after 10 years? (1 mark)
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