shauntire6bbeyorkco
Answered

Rita has deposited $1000 in a bank account. At the end of each year, the bank posts interest to her account in the amount of 5% of the balance, but then takes out a $10 annual fee.


would I write it as...

bn = 1.05bn - 10

or

bn = 1.05b(n-1) - 10




the n is subscript

Verified Answer :

QuantumPhysics101

5% of $1000 is $50 bringing up her balance to $1050 minus the $10 fee at the end the year making her balance $1040.
For year 2 it will be $1082
For year 3 it will be $1126.10
For year 4 it will be $1172.41
For year 5 it will be $1231.03

meerkat18

lets label them first,
bn= end of year balance

bn−1= start of year balance

then,

bn=1.05bn−1−10

is correct formula to use.
Note that the initial deposit amount is b0=1000
using your formula, after 1 year, the balance would be,

b1=1.05b1−1−10

b1=1.05b0−10

b1=1.05×1000−10

b1=1040

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