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Freedom Day

A release-checked medium problem for training Recurrence Relations.

Question

It's the $4$th of July, so to be very patriotic, you decide to invest $\$b_0$ in a stock today that doubles in value each day, and then drops the total account value by $\$r$ immediately after each doubling. For example, if $r = 40$ and $b_0 = 100$, you would have $\$160$ in your account tomorrow. You find that after $n$ days, you have $\$0$ in your account. How much money was in the account $0 \leq k \leq n$ days after your initial investment? Report the answer with $r = 1280, n = 8$, and $k = 5$.

Practice focus

This Brainteasers problem is tagged Recurrence Relations. State the random variables and conditioning information explicitly, then check the result against boundary cases before opening hints or a solution.

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Brainteasers · Marshall Wace, Akuna