If a bank pays interest at a rate of i compounded m times a year, then the amount of money Pk at the end of k time periods (where one time period = 1/mth of a year) satisfies the recurrence relation Pk = 1 + i m Pk − 1 with initial condition P0 = the initial amount deposited. Find an explicit formula for Pn. The given recurrence relation defines a geometric sequence Correct: Your answer is correct. with constant multiplier Correct: Your answer is correct. , which is Incorrect: Your answer is incorrect. . Therefore, Pn = Incorrect: Your answer is incorrect. for every integer n ≥ 0.

Acapitalist economy is when all goods are owned by the government or private industries.

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