Model a compound-interest investment or loan with a recurrence relation
Ava borrows $31,250 through a car loan. Interest compounds once per year
The amount owed follows the recurrence below. The index counts complete years from the start, with the initial balance at index zero
\[V_0 = \$31{,}250\]
\[V_{n+1} = 1.12 \times V_n\]
Assume a fixed annual rate, no fees and no repayments or further borrowing. Retain full precision between periods and round only the requested reported amounts