VCE Together Year 12 Annuity Investments

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Annuity Investments

Annuity Investments is a part of the VCE Further Maths topic Recursions and Financial Modelling. 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.

What are Annuities?

The following video explains what an annuity is and how it works.

Example

 

What is a Recurrence Relation When Modelling an Annuity?

recurrence relation uses the previous results in order to obtain the next value in the investment. The following video shows you how to solve a recurrence relation and modelling annuities.

 

Example

 

What About Adding to my Investment?

This next video looks at what happens when regular additions to the investment are made.

 

Want to learn more? Check out more of our VCE Mathematics resources here!

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