A formula for the sequence
\(B\) in
Example 8.1.7 is
\(B = 100(1.08)^k\) for
\(k\geq 0\text{.}\) A proof by induction follow.
If \(k= 0\text{,}\) then \(B = 100(1.08)^0 = 100\text{,}\) as defined. Now assume that for some \(k\geq 1\text{,}\) the formula for \(B_k\) is true.
\begin{equation*}
\begin{split}
B_{k+1} &= 1.08B_k \textrm{ by the recursive definition}\\
&=1.08\left(100 (1.08)^k\right) \textrm{ by the induction hypothesis}\\
&= 100 (1.08)^{k+1}
\end{split}
\end{equation*}
hence the formula is true for \(k+1\)
The formula that we have just proven for
\(B\) is called a closed form expression. It involves no recursion or summation signs.