Annuities and perpetuities: recurrence models and finance-solver problems

What this note covers

1. The definitions the syllabus gives you, and why they matter
2. The recurrence relation for an annuity
3. Investigating duration: the three levers in 4.2.6
4. Annuities on the finance solver
5. Perpetuities: when the payment is exactly the interest
6. The sister model: paying into an investment
7. What Section One can ask when no calculator is allowed
8. How this is examined, and what separates a top answer

8 sections · 12 key terms & formulas · 6 common mistakes