Model a simple-interest investment or loan with a recurrence relation
A family savings account pays simple interest at 5% p.a. Liam opens one with $7,900.80
This is modelled with a recurrence relation below, where \(V_n\) is the balance after \(n\) years:
\[V_0 = \$7{,}900.80\]
\[V_{n+1} = V_n + \$395.04\]