Question

An investor opened an account with an online brokerage firm and deposited $1,000.00 into the account. She then used all the money in the account to buy some shares in a company, costing her $15.00 in fees, and made a 10% profit on the remainder of her money. She then sold the shares, costing her $15.00 in fees, and bought some shares in another company with the remainder of her money, costing her $15.00 in fees, and she made a 10% profit on the remainder of her money. Finally, she sold the shares, costing her $15.00 in fees. Which of these recursive formulas will produce the sequence that represents her original number of dollars, her number of dollars after her first sale, and her number of dollars after her second sale?

Answer 1

T1 = 1000, tn = (1.1)(tn – 1 – 15) – 15