Question

I. On 1 April 2018, €1,250 was invested in EUROBANK at a fixed rate of 4.5% per annum. This interest is compounded annually. No more lodgements are made. No withdrawals are to be made. Find: (a) a(1), the amount in the account after 1 year- i.e., on 1 April 2019; [2 marks [2 marks] [5 marks] [5 marks] [2 marks (b) a(2), the amount in the account after 2 years - i.e., on 1 April 2020; (c) A recursive formula for a(n), the amount in the account after nu years. d) A closed form solution for a(n), the amount in the account after n years. (e) The amount in the account on 1 April 2061.

Answer 1

et the int amound be a iS 4.5 % per annun rst year amound oftes one yeas 10 O 1a50+56 a) s h amound afteir ad) is the amound after ae)wi be Sum of au) ard emoundafter is the interest fo5 a(1) in one year

nterest for aU) in O nO 5o a@)a)aU -1306 a5+59.78 1 35 1 364 o3135 a a) 13 64 03 a(n) is the amound afteð dears. Itwil be the Sum os amound at (n-" year rd jn terest of on-l) fo one year

Find ap) have aco) ㄧˋ but a(o) -ia50 1250x(104-5. a(n)= € So

4 3 eao3 by the Previous fomla = € 8296.79772 60 a mondn 3o6 wil be g a96 79