As shown in Example 5.6.7, if a bank pays interest at a rate of 4% per year compounded
annually and An denotes the amount in the account at the end of year n, then Ak =
(1.04)Ak−1, for all integers k ≥ 1, assuming no deposits or withdrawals during the year.
Suppose the initial amount deposited is $100,000, and assume that no additional deposits
or withdrawals are made.