Simple Interest II (using recursive methods)
Interactive practice questions
An investment of $\$6000$$6000 pays simple interest at a rate of $4.2%$4.2% per annum and is modelled by the recurrence relation
$V_n=V_{n-1}+252$Vn=Vn−1+252, $V_0=6000$V0=6000
where $V_n$Vn is the value of the investment after $n$n years.
Use the sequence facility on your calculator to answer the following questions.
Calculate the value of the investment after $5$5 years.
How much interest has been earned in $5$5 years?
After how many years will the investment double?
Your answer should be a whole number.
An investment of $\$3000$$3000 pays simple interest at a rate of $7.7%$7.7% per annum and is modelled by the recurrence relation
$V_n=V_{n-1}+231$Vn=Vn−1+231, $V_0=3000$V0=3000
where $V_n$Vn is the value of the investment after $n$n years.
Use the sequence facility on your calculator to answer the following questions.
An investment pays simple interest annually and is modelled by the recurrence relation
$V_n=V_{n-1}+2310$Vn=Vn−1+2310, $V_0=30000$V0=30000
where $V_n$Vn is the value of the investment after $n$n years.
An investment pays simple interest annually and is modelled by the recurrence relation
$V_n=V_{n-1}+468$Vn=Vn−1+468, $V_0=9000$V0=9000
where $V_n$Vn is the value of the investment after $n$n years.