Suppose that you borrow 20000 dollars from a bank, and that the bank charges 4 percent annual interest, compounded monthly, on the loan. You make monthly payments of 200 dollars at the end of each...

Extracted text: Suppose that you borrow 20000 dollars from a bank, and that the bank charges 4 percent annual interest, compounded monthly, on the loan. You make monthly payments of 200 dollars at the end of each month. Write down a word equation that can be used to calculate the amount that is owed on the loan at the end of the month in terms of the amount owed at the start of the month. Writing the monthly balance (i.e. how much is owed) as yn , translate your word equation into mathematical terms. Simplify this equation. If we write Yn+1 = a yn + b, what are the values of a and b? a = 1.003 b = 8 What is the value of yo? Yo = 20000