- #1

- 3

- 0

John took a bank loan of $200000 to buy a flat. The bank charges an anual interest rate of 3% on the outstanding loan at the end of each year. John pays $1000 at the beginning of each month until he finishes paying for his loan.

Let Un denote the amount owed by john at the end of the nth year,

(i)show that Un= k(u n-1 - 1200) where k is a constant to be determined.

(ii) Express u n in the form of a +(1.03^n)b, where a and b are constants to be determined.

## Homework Equations

## The Attempt at a Solution

year total amt owed (before end of year) ''(at the end of year)

1 $200000 200000(1.03)- 12000

2 200000(1.03)-1200 (1.03)^2(200000)-12000(1.03)

1