1. Use a difference equation to derive the formula for the present value of a decreasing annuity...

Question:

1. Use a difference equation to derive the formula for the present value of a decreasing in which R dollars is withdrawn from a savings account at the end of each interest period and where the interest rate per period is i.
2. A parachutist opens her parachute after reaching a speed of 100 feet per second. Suppose that yn, her speed n seconds after opening the parachute, satisfies the difference equation yn = .1yn-1 + 14.4, y0 = 100.
(a) Solve the difference equation
(b) Her speed will get closer and closer to what speed?
Annuity
An annuity is a series of equal payment made at equal intervals during a period of time. In other words annuity is a contract between insurer and insurance company in which insurer make a lump-sum payment or a series of payment and, in return,...