Calculus 2 question. Please explain clearly. A bank account earns 5% interest compounded monthly. Suppose that...

Calculus 2 question. Please explain clearly.

A bank account earns 5% interest compounded monthly. Suppose that $1,000 is initially deposited into the account, but that $10 is withdrawn each month.

a) Show that the amount in the account after n months is A_n=(1+0.05/12)A_n-1-10; A₀=1000

b) How much money will be in the account after 1year?

c) Suppose that instead of $10, a fixed amount of d dollars is withdrawn each month from the account. Find a value of d such that the amount in the account after each month remains at $1,000

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Expert Solution

Colby Messinger answered 1 year ago

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