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Introduction

Arithmetic and geometric progressions are particular types of sequences of numbers which occur frequently in business calculations. This leaﬂet explains these terms and shows how the sums of these sequences can be found.

Arithmetic progressions

An arithmetic progression is a sequence of numbers where each new term after the ﬁrst is formed by adding a ﬁxed amount called the common diﬀerence to the previous term in the sequence. For example the sequence 3, 5, 7, 9, 11 . . . is an arithmetic progression. Note that having chosen the ﬁrst term to be 3, each new term is found by adding 2 to the previous term, so the common diﬀerence is 2. The common diﬀerence can be negative: for example the sequence 2, −1, −4, −7, . . . is an arithmetic progression with ﬁrst term 2 and common diﬀerence −3. In general we can write an arithmetic progression as follows: arithmetic progression: a, a + d, a + 2d, a + 3d, . . .

where the ﬁrst term is a and the common diﬀerence is d. Some important results concerning arithmetic progressions (a.p.) now follow: The nth term of an a.p. is given by: a + (n − 1)d

The sum of the ﬁrst n terms of an a.p. is

Sn =

n (2a + (n − 1)d) 2

The sum of the terms of an arithmetic progression is known as an arithmetic series

business

www.mathcentre.ac.uk

c mathcentre May 19, 2003

Geometric progressions

A geometric progression is a sequence of numbers where each term after the ﬁrst is found by multiplying the previous term by a ﬁxed number called the common ratio. The sequence 1, 3, 9, 27, . . . is a geometric progression with ﬁrst term 1 and common ratio 3. The common ratio could be a fraction and it might be negative. For example, the geometric progression with ﬁrst term 2 and common ratio − 1 is 3 2 2 2 2, − , , − , . . . 3 9 27 In general we can write a geometric progression as follows: geometric progression: where the ﬁrst term is a and the common ratio is r. Some important results concerning geometric progressions (g.p.) now follow: The nth term of a g.p. is given by: ar(n−1) a, ar, ar2 , ar3 , . . .

The sum of the ﬁrst n terms of a g.p. is

Sn =

a(1 − rn ) 1−r

(valid only if r = 1)

The sum of the terms of a geometric progression is known as a geometric series. If the common ratio in a geometric series is less than 1 in modulus, (that is −1 < r < 1), the sum of an inﬁnite number of terms can be found. This is known as the sum to inﬁnity, S∞ . S∞ = a 1−r provided − 1 < r < 1

Exercises 1. Find the 23rd term of an a.p. with ﬁrst term 2 and common diﬀerence 7. 2. A g.p. is given by 1, 1 , 1 , . . . What is its common ratio ? 2 4 3. Find the 7th term of a g.p. with ﬁrst term 2 and common ratio 3. 4. Find the sum of the ﬁrst ﬁve terms of the a.p. with ﬁrst term 3 and common diﬀerence 5. 5. Find the sum of the ﬁrst ﬁve terms of the g.p. with ﬁrst term 3 and common ratio 2. 6. Find the sum of the inﬁnite geometric series with ﬁrst term 2 and common ratio 1 . 2 Answers 1. 156, 2. 1 , 2 business 3. 1458, 4. 65, 5. 93, 6. 4.

c mathcentre May 19, 2003

www.mathcentre.ac.uk

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