Financial Maths and Recursion

• 2 x 3 + 4

• 2 x 4 + 4

• 2 x 10 + 4

• 2 x 24 + 4

• 2 x 52 + 4

• Loan I

• Loan II

• Loan III

• Loan IV

• Loan V

• $B_1$

• $B_2$

• $B_3$

• $B_4$

• $B_5$

• 0, 2, 7, 22 ...

• 1, 2, 7, 22 ...

• 2, 5, 16, 49 ...

• 2, 7, 18, 54 ...

• 2, 7, 22, 67 ...

Consider the first 5 terms in the sequence.

98, 97, 96, 95, 94, ...

This can be generated using the recurrence relation:

Match up the following terms with their definition

• constant difference between terms

• recursion rule

• constant ratio between terms

• recursive relation

• enables you to find the nth term

• geometric sequence

• produce successive terms in a sequence

• arithmetic sequence

For an investment with an interest rate of 3.95% per annum, compounding monthly, the monthly

interest rate is closest to

• 0.03%

• 0.33%

• 0.40%

• 0.47%

Which of the following rules can be used to model this geometric sequence?

0.5, 1, 2, 4, 8, …

Approximately how long would it take for Sarah to save up for a $5000 for a holiday, if she has $3500 now and elects to invest her money at 12%p.a, interested credited monthly?

n = _______________