1. The difference equation for the quarterly balance in an increasing annuity with interest compounded quarterly and...

Question:

1. The difference equation for the quarterly balance in an increasing with interest compounded quarterly and money added at the end of each quarter year is
yn = 1.008yn-1 + 1196, y0 = 37,780
and the solution of the difference equation is
yn = -149,500 + 187,280(1.008)n.
(a) What are the amount initially deposited into the the annual rate of interest, and the quarterly amount deposited into the Will the value of the reach $100,000 after 7 years, 8 years, or 9 years?
2. The difference equation for the weekly balance in a decreasing with interest compounded weekly and money withdrawn at the end of each week is
yn = 1.0005yn-1 - 200, y0 = 24,792
and the solution of the difference equation is
yn = 400,000 - 375,208(1.0005)n.
(a) What are the amount initially deposited into the the annual rate of interest, and the weekly amount withdrawn from the Will the be depleted after 128 weeks or 138 weeks?
Annuity
An annuity is a series of equal payment made at equal intervals during a period of time. In other words annuity is a contract between insurer and insurance company in which insurer make a lump-sum payment or a series of payment and, in return,...