need as soon as

EXERCISE 1.1 At time 0, you borrow an amount xo to buy an apartment. Starting from the next period 1, you repay the fixed amount y per period. The interest rate (per period) on your mortgage is r > 0. (a) Derive a difference equation that describes the evolution of your debt from period 0 onwards. Basic concepts (b) Assume that the parameters are given by xo = 1000, r = 5%, and y = 150 Compute the debt level for as many periods as it is positive. (c) Is the debt level a pre-determined variable or a jump variable