a) Find a recurrence relation for the balance B(k) owed at the end of k months on a loan at a rate of r if a payment P is made on the loan each month. [Hint: Express B(k) in terms of B(k −1) and note that the monthly interest rate is r ∕ 12.]b) Determine what the monthly payment P should be so that the loan is paid off after T months.
a) Find a recurrence relation for the balance B(k) owed at the end of k months on a loan at a rate of r if a payment P is made on the loan each month. [Hint: Express B(k) in terms of B(k −1) and note that the monthly interest rate is r ∕ 12.]b) Determine what the monthly payment P should be so that the loan is paid off after T months.
Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
Problem 1RQ
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a) Find a recurrence relation for the balance B(k) owed at the end of k months on a loan at a rate of r if a payment P is made on the loan each month. [Hint: Express B(k) in terms of B(k −1) and note that the monthly interest rate is r ∕ 12.]
b) Determine what the monthly payment P should be so that the loan is paid off after T months.
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