Margarita borrows $14,000 from her uncle and agrees to repay it in monthly installments of $400. Her uncle charges 0.9% interest per month on the balance.
(a) If her balance An in the nth month is given recursively by A0 = 14,000 and An = k · An − 1 − 400, what is k?
(b) Find her balance after two months. (Round your answer to the nearest cent.)
