Answer the questions in Exercise 1a-e for the sequence generated by u0 = 500 and un =

Question:

Answer the questions in Exercise 1a-e for the sequence generated by u0 = 500 and un = (1 + 0.04/4) un-1 -25 where n ≥ 1. Let n be measured in quarter-years.
In Exercise 1
a. Is this a loan or an investment? Explain your reasoning.
b. What is the principal?
d. What is the deposit or payment amount?
e. What is the annual interest rate?
f. What is the frequency with which interest is compounded?