$2 000 is borrowed at an interest rate of 12% per annum, compounding monthly. The loan will be repaid by making monthly payments of $300. Let Vn be the balance of the loan after n payments have been made.

1. Model this loan using a recurrence relation.

2. Use the recurrence relation in part (a) to determine the balance of the loan after the second payment. Show all the working and give your answer to the nearest cent.

3. What is the amount of principal repaid from the second payment. Give your answer to the nearest cent.