MA 1.2 In this question, you will be asked to represent a word problem in mathem
ID: 2855582 • Letter: M
Question
MA 1.2
In this question, you will be asked to represent a word problem in mathematical terms. You will only have to enter your final answer into WebAssign, but you should keep hold of the paper that shows your intermediate calculations. Suppose that you borrow 50000 dollars from a bank, and that the bank charges 12 percent interest each year on the loan. {Another way of saying this is that the interest is compounded annually.) You make an annual payment of 50 dollars. Write down a word equation that can be used to calculate the amount that is owed on the loan at the end of the year in terms of the amount owed at the start of the year. Writing the balance (i.e. how much is owed) after n years as y_n, translate your word equation into mathematical terms. Simplify this equation. If we write y_n+1 = a y_n + b, what are the values of a and b?Explanation / Answer
yn+1=ayn+b
amount owed to the bank initially =50000$
y0=50000
given rate of interst =12%
a=1+(12/100)
a=1.12
annual payment =50$ =>b=-50
amount owed after n years yn+1=1.12yn -50
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