Question 5 • GA-Algebra: Concepts and Connections CR
Each year’s balance is 1.05 times the previous year’s balance: 105 ÷ 100 = 1.05, and 110.25 ÷ 105 = 1.05. This means the account earns 5% interest each year, so the recurrence is f(n + 1) = 1.05f(n), choice C.
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