What is an Annuity?
An Annuity is an investment that involves a regular contribution of money. The amount of money you invest throughout the duration of the investment alongside the interest earned will equal the future value of the annuity. This post will explain what annuities are in more detail alongside the recurrence relation calculation in HSC Standard Math.
The following video explains what an annuity is and how it works.
What is a recurrence relation when modelling an annuity
A recurrence relation uses the previous results in order to obtain the next value in the investment. The following video solves a recurrence relation modelling the annuity.