an+1 = .03 + 900

ev = 927.83

r=.03

part c and d

Question 1. (20 pts) Your grandparents have a savings account. The value increases at the end of each month by an automatic deposit of 0.3% interest on the previous month's balance. Your grandparents deposit $900 at the end of each month. (a) Model the annuity with a dynamical system (difference equation). (b) Find the equilibrium value (EV). Is this EV stable or unstable? Why? (e) Find the solution of the difference equation (i.e., a formula for an). (d) Use the solution found in (c) to determine the minimum initial amount in the account if they wish to have $190,000 in 10 years. Question 1. (20 pts) Your grandparents have a savings account. The value increases at the end of each month by an automatic deposit of 0.3% interest on the previous month's balance. Your grandparents deposit $900 at the end of each month. (a) Model the annuity with a dynamical system (difference equation). (b) Find the equilibrium value (EV). Is this EV stable or unstable? Why? (e) Find the solution of the difference equation (i.e., a formula for an). (d) Use the solution found in (c) to determine the minimum initial amount in the account if they wish to have $190,000 in 10 years