Let's discuss again the savings certificate example investigated in Chapter 1 as a discrete dynamical system. Here, we consider the value of a certicate initially worth $1000 that accumulates annual interest at 12% compounded continuously (rather than 1% each month as in Example 1 of Section 1.1). We would like to know the value of the certificate in 10 years.
If Q.t/ represents the value of the certificate at any time t we have the model:

Data from example 1

Find the first three approximations y₁, y₂, y₃ using Euler's method for the initial value problem: