HR17 - Repeated change models

HR17 - Repeated change models

Describe repeated fixed and proportional changes with an initial state, generate successive values, and compare their behaviour and assumptions. HR17 includes general iterative processes as well as growth and decay.

General iterative rules

Does multiplying by less than 11 always make a quantity eventually approach zero? A repeated model can also add a fixed amount, so the whole rule matters.

State and update rule

A state is the value at a specified stage. An iterative rule calculates the next state from the current one. Here x0x_0 is the initial state and xnx_n is the state after nn completed periods:

xn+1=f(xn).x_{n+1}=f(x_n).

Some questions start with x1x_1 instead; use the given indexing rather than assuming the first subscript is zero.

A fixed addition of cc gives xn+1=xn+cx_{n+1}=x_n+c. A repeated percentage change gives xn+1=rxnx_{n+1}=rx_n, where rr is the multiplier. Combining proportional change with a fixed addition gives xn+1=rxn+cx_{n+1}=rx_n+c, if the proportional change happens first.

For initial 100100, adding 2020 each period gives 120,140,160120,140,160; multiplying by 1.21.2 gives 120,144,172.8120,144,172.8. The first updated value agrees, but the rules are different.

Worked example 1: growth followed by a fixed deposit

Question. An ideal savings model starts at £200200. At each month end, the balance increases by 5%5\%, then £3030 is deposited. Write an initial condition and rule, and find the first three month-end balances.

Plan. Multiply the current balance by 1.051.05, then add 3030. One update represents one month.

B0=200,Bn+1=1.05Bn+30.B_0=200,\qquad B_{n+1}=1.05B_n+30. B1=240,B2=1.05(240)+30=282,B3=1.05(282)+30=326.10.B_1=240,\qquad B_2=1.05(240)+30=282,\qquad B_3=1.05(282)+30=326.10.

Answer. The rule above gives £240240, £282282, £326.10326.10.

Check. The first interest amount is 0.05×200=0.05\times200= £1010, so 200+10+30=240200+10+30=240. The second is £1212, giving 240+12+30=282240+12+30=282.

A multiplier below 11 can describe removal of a fraction, with a separate fixed input afterwards.

Worked example 2: proportional loss followed by replenishment

Question. A tank initially contains 120120 litres. Each day 25%25\% of the current water is removed, then 1818 litres is added. Write the rule and find the next three states.

Plan. Removing 25%25\% leaves 75%75\%, so multiply by 0.750.75 before adding 1818.

V0=120,Vn+1=0.75Vn+18.V_0=120,\qquad V_{n+1}=0.75V_n+18. V1=108,V2=0.75(108)+18=99,V3=0.75(99)+18=92.25.V_1=108,\quad V_2=0.75(108)+18=99,\quad V_3=0.75(99)+18=92.25.

Answer. 108108, 9999, 92.2592.25 litres.

Check. The first day removes 3030 litres and adds 1818, a net fall of 1212. The second removes 2727 and adds 1818, a net fall of 99.

Record an intermediate table so the output of one update becomes the next input. Keep unrounded values unless the question specifies rounding at each stage; real financial or counting processes may impose such rounding.

Watch out

rx+crx+c means “multiply, then add”. Adding first gives r(x+c)r(x+c), which also multiplies the new input by rr.

Build and use a fresh rule.

Long-term behaviour

Generating terms shows whether values rise, fall or appear to settle. A fixed point is a state that the rule maps back to itself. Check a proposed fixed point by substitution; a few rounded equal-looking terms alone do not prove exact equality.

Worked example 3: approaching a stable level

Question. Investigate Vn+1=0.75Vn+18V_{n+1}=0.75V_n+18, starting at 120120 litres. Does the water approach zero?

Plan. Generate more values and test the candidate level where the daily removal matches the 1818-litre input.

nn001122334455
VnV_n, litres120120108108999992.2592.2587.187587.187583.39062583.390625

At 7272 litres, removal is 0.25×72=180.25\times72=18 litres. Substitution gives 0.75(72)+18=720.75(72)+18=72.

Answer. The values approach 7272 litres rather than zero. 7272 is a fixed point.

Check. The initial gap above 7272 is 4848, then 36,27,20.25,…36,27,20.25,\ldots: each gap is multiplied by 0.750.75. Starting at 00 instead gives 18,31.5,41.625,…18,31.5,41.625,\ldots, approaching the same level from below.

The fixed input changes the long-term level. Compare this with pure proportional changes.

Worked example 4: growth and decay without an input

Question. Two numerical models start at 100100:

Gn+1=1.2Gn,Dn+1=0.8Dn.G_{n+1}=1.2G_n,\qquad D_{n+1}=0.8D_n.

Generate three updates and describe their longer-term behaviour if the rules continue unchanged.

Plan. Apply each multiplier repeatedly; distinguish absolute changes from percentage changes.

nn00112233
GnG_n100100120120144144172.8172.8
DnD_n1001008080646451.251.2

Answer. GnG_n keeps growing under this unrestricted model. DnD_n decreases towards zero but remains positive after every finite number of updates.

Check. Every growth ratio is 1.21.2; every decay ratio is 0.80.8. The decreases are 20,16,12.820,16,12.8, not a fixed subtraction of 2020.

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