demonstrate the use of a recurrence relation to determine the depreciating value of an asset or the future value of an investment or a loan after 𝑛 time periods for the initial sequence
U3.AoS2.3
the concepts of financial mathematics including simple and compound interest, nominal and effective interest rates, the present and future value of an investment, loan or asset, amortisation of a reducing balance loan or annuity and amortisation tables
U3.AoS2.4
the use of first-order linear recurrence relations to model compound interest investments and loans, and the flat rate, unit cost and reducing balance methods for depreciating assets, reducing balance loans, annuities, perpetuities and annuity investments
