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Mathematics, 06.10.2019 10:30 wildfire771003

Cash flow to bank account balance. the t-vector c represents the cash flow for an interest bearing bank account over t time periods. positive values of c indicate a deposit, and negative values indicate a withdrawal. the t-vector b denotes the bank account balance in the t periods. we have bi -ci (the initial deposit or withdrawal) and bt = (1 + r)bt-1+ct , t = 2, ,t, where r > 0 is the (per-period) interest rate. (the first term is the previous balance plus the interest, and the second term is the deposit or withdrawal.) find the t × t matrix a for which b - ac. that is, the matrix a maps a cash flow sequence into a bank account balance sequence your description must make clear what all entries of a are.

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Cash flow to bank account balance. the t-vector c represents the cash flow for an interest bearing b...

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