John invests $40 000 at 6% per annum, compounding monthly. He plans to add an additional $500 to his investment each mon

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John invests $40 000 at 6% per annum, compounding monthly. He plans to add an additional $500 to his investment each mon

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John Invests 40 000 At 6 Per Annum Compounding Monthly He Plans To Add An Additional 500 To His Investment Each Mon 1
John Invests 40 000 At 6 Per Annum Compounding Monthly He Plans To Add An Additional 500 To His Investment Each Mon 1 (55.28 KiB) Viewed 23 times
John invests $40 000 at 6% per annum, compounding monthly. He plans to add an additional $500 to his investment each month. a. Model this compound interest investment with regular additions to the principal using a recurrence relation of the form: Vo = the principal, Vu+1 = RV +D where R=1+- 100t Let V, be the value of the investment after John had made n monthly payments to his investment. 2 marks b. Use the relevant formula from the formula sheet to determine the value of John's investment after 25 years. Give your answer correct to the nearest dollar. 45 marks
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