# Maurice and Lester are twins who have just graduated from college.They have both been offered jobs where their take-home pay would be $2500 per month Wierzycaz 2021-08-16 Answered Maurice and Lester are twins who have just graduated from college. They have both been offered jobs where their take-home pay would be$2500 per month. Their parents have given Maurice and Lester two options for a graduation gift. Option 1: If they choose to pursue a graduate degree, their parents will give each of them a gift of $35,000. However, they must pay for their tuition and living expenses out of the gift. Option 2: If they choose to go directly into the workforce, their parents will give each of them a gift of$5000. Maurice decides to go to graduate school for 2 years. He locks in a tuition rate by paying $11,500 for the 2 years in advance, and he figures that his monthly expenses will be$1000. Lester decides to go straight into the workforce. Lester finds that after paying his rent, utilities, and other living expenses, he will be able to save $200 per month. Their parents deposit the appropriate amount of money in a money market account for each twin. The money market accounts are currently paying a nominal interest rate of 3 percent, compounded monthly. Lester works during the time that Maurice attends graduate school. Each month, Lester saves$200 and deposits this amount into the \$5000 money market account that his parents set up for him when he graduated. If Lester's initial balance is u0=5000,un is the current month's balance, and un−1 is last month's balance, write an expression for un in terms of un−1.
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We know from item 10 that: $\left(\text{Account balance any month}={u}_{n}\right)=\left(\text{account balance the month before}={u}_{n-1}\right)×1.0025+200$
So, the equation becomes: ${u}_{n}={u}_{n-1}\cdot 1.0025+200$