Higher November 2023 Paper 2 Q26

AQACurrent spec3 marksIterations

26 Rick borrows £1500 from a bank.

He pays back £100 each month.

This iterative formula works out the amount he still owes at the end of each month.

\(A_{n+1} = 1.02 \times A_n - 100\)

\(A_0 = 1500\)

Work out the amount he still owes at the end of the 2nd month. [3 marks]