Artificial intelligent assistant

Algebraic Sequences, mortgage geometric sequence selma has a mortgage of 150000. At the end of each year 6% interest is added before Selma pays 10000. Q) Find an expression for how much is owed at the end of the nth year?!

1) What is the recurrence relation? i.e. if $x_{n}$ is owed at the end of the $n$th year, with $x_{0}=150000$, what is $x_{n+1}$ in terms of $x_{n}$? You should be able to work this out.

> It's $x_{n+1}=1.06x_{n}-10000$.

2) Can you use this to come up with a closed form expression for $x_{n}$?

Hint 1:

> Try $x_{n}=a\cdot1.06^{n}+c$. Substitute into the recurrence relation and then substitute in $x_{0}$ to get the two constants.

Answer:

> $x_{n+1} = 1.06x_{n}-10000 = 1.06\cdot a\cdot1.06^{n}+1.06c - 10000 = a\cdot1.06^{n+1}+1.06c-10000 = a\cdot1.06^{n+1}+c \Rightarrow 0.06c = 10000 = 10^{6}/6 \\\ x_{0}= 150000 = a + 10^{6}/6 \Rightarrow a = (900000-10^{6})/6 = -10^{5}/6 \\\ \therefore x_{n} = \frac{10^{5}}{6}\left(10 - 1.06^{n}\right)$
> You can find the number of years to pay the mortgage by finding the smallest integer $n$ for which $x_{n}\le 0$, which is $\lceil\ln{10}/\ln{1.06}\rceil = 40$.

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