Finance Applications Using Arithmetic Sequences and Recurrence Relations (VCE SSCE General Mathematics): Flashcards

Quantity increases by same fixed amount at regular intervals

Quantity decreases by same fixed amount at regular intervals

Interest based only on original amount (principal)

$D = \frac{r}{100} \times V_0$

$V_0 = P$, $V_{n+1} = V_n + D$

Asset loses same fixed amount of value each period

$V_{n+1} = V_n - D$

Asset value decreases based on usage, not age

$V_n = V_0 + n \times D$

Growth: $D > 0$; Decay: $D < 0$