About This Chapter
Recursion and Financial Modeling - Chapter Summary
In this chapter, you can review information on applying first-order linear recurrence relation to solving financial problems. In addition, you will learn how to use tables when solving financial problems. The lessons offer clear definitions and provide examples to facilitate your learning experience. Once you have reviewed this chapter, you should be able to do the following:
- Define first-order linear recurrence
- Solve financial problems relating to depreciation, compound investments and annuities
- Use tables to analyze and interpret financial problems
Expert instructors relate information in clear, simple terms to help you fully understand these concepts. Lessons are accessible 24/7 from any device, and you can print them to create quick reference tools. Use the assessment quizzes to measure what you know and determine your readiness in moving from one topic to the next as your progress through the chapter.
1. What is a First-Order Linear Recurrence? - Definition & Uses
In this lesson we explore recurrence relations for estimating the value of a quantity based on the value it had at an earlier time. We will show some useful financial applications.
2. First-Order Linear Recurrence Relation to Solve Financial Problems
In this lesson we explore how first-order linear recurrence relations lead to formulas for calculating many useful finance quantities like depreciation, compound investment, and amortization.
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Other chapters within the VCE Further Mathematics: Exam Prep & Study Guide course
- Population & Samples
- Categorical Data Representation
- Numerical Data Representation
- Data Distribution
- Correlation & Causation in Math
- Non-Causal Relationships in Statistics
- Linear Relationships
- Time Series Data
- Concepts of Financial Mathematics
- Matrices Overview
- Graphs & Networks
- Paths & Circuits
- Problem Solving With Networks
- Geometric Solids
- Measurement & Trigonometry
- Spherical Geometry
- Applications of Spherical Geometry
- Graphs & Relations
- Linear Programming Overview
- VCE Further Mathematics Flashcards