this question is regarding the monthly bill for a cell phone. $5.00 is the flat start out fee and $0.03 are added for each minute.
Ao = 5.00
A1 = Ao + 0.03 = 5.00 + 0.03 = 5.03
A2 = A1 + 0.03 = 5.03 + 0.03 = 5.06
A3 = A2 + 0.03 = 5.06 + 0.03 = 5.09
Therefore, the recursive rule is
An = An-1 + 0.03
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