Question: Phil bought a car by taking out a loan for $18,500 at 0.5% interest per month. Phils normal monthly payment is $434.47 per month, but

Phil bought a car by taking out a loan for $18,500 at 0.5% interest per month. Phil’s normal monthly payment is $434.47 per month, but he decides that he can afford to pay $100 extra toward the balance each month. His balance each month is given by the recursively defined sequence

B₀ = $18,500 B_n = 1.005B_n-1 - 534.47

Determine Phil’s balance after making the first payment. That is, determine B₁

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