(You can find out more about continued fractions here.) Now back to our sequence. The ratio of successive terms is $$\frac{a_i}{a_{i-1}}.$$ By equation (1) this is equal to $$\frac{a_i}{a_{i-1}}=\frac{na_{i-1}+a_{i-2}}{a_{i-1}}=n+\frac{a_{i-2}}{a_{i-1}}.$$ Now $$\frac{a_i}{a_{i-1}}=n+\frac{a_{i-2}}{a_{i-1}}=n+\frac{1}{\frac{a_{i-1}}{a_{i-2}}}.$$ Applying equation (1) to the term $a_{i-1}$ we get $$\frac{a_i}{a_{i-1}}=n+\frac{1}{\frac{na_{i-2}+a_{i-3}}{a_{i-2}}}=n+\frac{1}{n+\frac{a_{i-3}}{a_{i-2}}}.$$ You can see the picture: continuing to make substitutions according to equation (1), we end up with a finite continued fraction expression for $a_{i}/a_{i-1}$ of the form $$a_{i}/a_{i-1}=n+\frac{1}{n+\frac{1}{n+\frac{1}{...+\frac{a_1}{a_2}}}}.$$ Letting $i$ tend to infinity we can then prove that the ratio of successive terms in the sequence converges to infinite continued fraction $$n+\frac{1}{n+\frac{1}{n+\frac{1}{n+...}}}. $$ Which, as we have sketch-proved above, is equal to $\lambda_n.$