Rules to determine the nth geometric term

Prior Knowledge:

• know what a sequence is

• know what a first-order recurrence relation is

• generate the terms of a first-order recurrence relation

• recognise arithmetic sequences and the evaluation of an arithmetic and geometric sequence

• Recurrence relation for compound interest V₀ = .. , V_n+1 = RV_n and R > 1

• Recurrence relation for reducing-balance depreciation V₀ = .. , V_n+1 = RV_n and R < 1

Key Vocabulary:

• growth

• decay

• compound interest (interest, principal, interest rate, time)

• reducing-balance depreciation (future value, written off, fixed amount, interval, cost price)