What must you invest today to receive an annuity of $4,500 for 10 years compounded at 8% quarterly when all withdrawals will be
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Answer:
Step-by-step explanation:
The recursive rule is a term defined in terms of other terms in the sequence.
The is a geometric sequence because it has a common ratio.
The common ratio can be found by dividing a term by previous term.
For example, all of these are equal:
They are all equal to .
So we are saying:
More formally:
.
Multiply both sides by :
When doing recursive form, you need to state a term of the sequence (or more depending on the recursive form you have).
So the first term is 2.
So the full thing for the answer is: