A deposit of $100,000 is made to an investment fund at the beginning of a year....

 

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A deposit of $100,000 is made to an investment fund at the beginning of a year. On the last day of each year two dividends are awarded. The first dividend is 20% of the amount in the account during that year. The second dividend is 45% of the amount in the account in the previous year. Find a recurrence relation for {Pn}, where Pn is the amount in the account I at the end of n years if no money is ever withdrawn. How much is in the account after n years if no money has been withdrawn? 1. [3 marks] 11. [5 marks] A deposit of $100,000 is made to an investment fund at the beginning of a year. On the last day of each year two dividends are awarded. The first dividend is 20% of the amount in the account during that year. The second dividend is 45% of the amount in the account in the previous year. Find a recurrence relation for {Pn}, where Pn is the amount in the account I at the end of n years if no money is ever withdrawn. How much is in the account after n years if no money has been withdrawn? 1. [3 marks] 11. [5 marks]