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.

Initial balance (B0):

Effective Interest Rate (r = 1 + rate):

Number of iterations (years):