Modelling Growth & Decay: Choosing the Right Model

What this note covers

1. One family, three models: u(n+1) = b × u(n) + c
2. Reading tables: the difference test, the ratio test, and the combined-model check
3. Reading graphs: straight lines, curves, and levelling off
4. Recurrence ⇄ rule: translating in both directions
5. Matching the finance scenario to the model
6. Interpretation in context and exam technique

6 sections · 14 key terms & formulas · 6 common mistakes