Marie knows that she will need to replace her office equipment some day. She deposits $900 into a savings account paying 2% interest compounded annually. At the end of each year she deposits $250 into the account. Let xt be the amount in the account after t years.

1. (a) Find the difference equation satisfied by xt .

2. (b) Solve the difference equation.

3. (c) How much money will Marie have in the account after 5 years? (Round your answer to two

decimal places.)