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Find all pairs $(b,c)$ of positive integers, such that the sequence defined by $a_1=b$, $a_2=c$ and $a_{n+2}= \left| 3a_{n+1}-2a_n \right|$ for $n \geq 1$ has only finite number of composite terms.

Number theory
Medium
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Do you really need a hint? Try it first!

There exists a general theory of second-order linear difference equations. Read about it here.
Can we have $a_n>a_{n+1}$ for all $n$? What happens if we do? What happens otherwise?

Note that if $a_n for some $n$ then the sequence becomes increasing thereafter. Use this fact to simplify the recurrence relation and solve it explicitly.

The sequence cannot be decreasing because it is a sequence of positive integers. Hence there exists (a smallest) $k$ such that $a_k\le a_{k+1}$. If $a_k=a_{k+1}$ then the sequence becomes constant from the $k$th term onwards (we shall treat this case later). Otherwise $3a_{k+1}-2a_k>a_k$ hence $a_{k+2}>a_{k+1}$. This implies that the sequence becomes increasing from the $k$th term onwards. Also, $a_{n+2}=3a_{n+1}-2a_n$ for $n\ge k$. This difference equation has the characteristic equation $\lambda^2-3\lambda +2=0$ (see the link in hint 1) which has the solutions $\lambda = 2,1$. Thus, $a_{n+k}=2^nA+B$ for $A,B$ satisfying $A+B=a_k, 2A+B=a_{k+1}$. Take any prime divisor $p$ of $A+B$. By Fermat’s little theorem, $2^{m(p-1)} \equiv 1 \; (\text{mod}\; p)$ for every positive integer $m$. Thus $2^{m(p-1)}A+B\equiv A+B\equiv 0\; (\text{mod}\; p)$. Hence the sequence contains infinitely many composites. This cannot be allowed, so the sequence cannot be strictly increasing at any point.

The above discussion shows that, for any permissible sequence, there exists a (smallest) $j$ and a prime $q$ such that $a_n=q$ for all $n\ge j$. For $n, the sequence is decreasing. Note that, either $q=a_{j+1}=3a_j-2a_{j-1}=3q-2a_{j-1}$ or $q =2a_{j-1}-3q$. Hence, either $a_{j-1}=q$ or $a_{j-1}=2q$. The first one can happen only if $j=1$ because otherwise the minimality of $j$ is violated. In that case, the sequence is constant and $b=c=q$. If $a_{j-1}=2q$ then either $j=2$ (in which case $b=2q, c=q$) or $q=|6q-2a_{j-2}|$ hence $a_{j-2}=3q\pm\frac{q}{2}$. The last equality forces $q$ to be 2. Thus $a_{j-2}=6\pm 1$. If $j>3$ then $4=a_{j-1}=|18\pm 3 - 2a_{j-3}|$ which is absurd as $2a_{j-3}$ cannot be an odd number. Hence $j=3$ in this case and $c=4,b=5,7$.

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