Bank Account Dynamical System
Copyright © 1999 Garret Wilson. Part of the MA International Studies and Diplomacy dissertation web site.
The balance of a bank account at any can be determined by the following formula:
Bn+1 = r · Bn
where Bn represents the balance of the account after year n, and r represents 1 + (interest rate) - (inflation rate). The dynamic is therefore linear, although its resulting time series is not.
Copyright © 1998-2003 Garret Wilson