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Question 3* (a) Suppose it costs $120 plus 20 cents a mile to rent a car for a week. Let A(n) represent the total cost for re

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a) A(n+1)=A(n)+20,A(0)=120 so that A(1)=120+20,A(2)=120+2\cdot 20\text{ and in general }A(n)=120+20n

b) A(0)=12,A(n+1)=A(n)-\frac{1}{20}

Which means A(1)=12-\frac{1}{20},A(2)=12-\frac{2}{20}\cdots A(n)=12-\frac{n}{20}

c) C(0)=200, C(n+1)=(0.8)C(n)+200

And so C(1)=0.8\cdot 200+200, C(2)=0.8^2\cdot 200+0.8\cdot 200+200

And in general C(n)=200(0.8^n+0.8^{n-1}+0.8+1)

C(n)=200\times \frac{1-0.8^{n+1}}{1-0.8}

Which is C(n)=1000\times (1-0.8^{n+1})

\blacksquare

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