Series

A handy set of formulae and procedures for work with sequences and series in the NSW HSC Mathematics
course (or equivalent).

1
Skills required for this topic include: Series Applications
1. Rock solid algebra skills Compound Interest
2. Knowledge of all of the formulas for arithmetic n
and geometric series as well as the compound interest  r 
A  P 1  
formula  100 

3. The ability to solve simultaneous equations A = Amount an investment will grow to

4. The ability to read with comprehension P = Principal amount that is invested

5. The ability to solve exponential equations using n = the number of periods

logarithms
r = rate of interest per period
6. The ability to use a calculator competently
Superannuation
In All Series…
$P is invested every period for n periods at a rate of r% per
a = the first term period.

T n = the nth term Investing at the start of each period

2 3 n
S n = the sum of the first n terms.  r   r   r   r 
A  P 1    P 1    P 1      P 1  
 100   100   100   100 
 r   r 
2
 r 
3
 r  
n
Arithmetic Series  P 1    1    1      1   
 100   100   100   100  

a , a  d , a  2d , a  3d , …, a   n  1 d   n 
 1  r 1  1  r   
d = the common difference  100   100   
 P  
  r  
Tn  a   n  1 d  1  1  
100  

 
n
Sn   2a   n  1 d  Investing at the end of each period
2
2 n 1
 r   r   r 
A  P  P 1    P 1      P 1  
n
Sn   a  l  , where l is the last (or nth ) term.  100   100   100 
2   r  
2 n 1
r   r  
 P 1  1    1      1   
Geometric Series   100   100   100  

a , ar   n 
, ar 2 , ar 3 , …, ar n 1 11  1  r   
   100   
r = the common ratio  P  
 1 1  r  
  
Tn  ar n 1  100  
 

Sn 

a 1 rn   
 1  1 
r  
n
 
100  
1 r  P  
 r  
 1  1   
a   100  
S  [Note: Only exists if r  1 .] 
1 r

2
Loan Repayments

$P is borrowed, it is to be repaid over n periods at a rate of r%

per period with equal repayments of M.

3
   r n 
 r  n  1  1   
A1  P1  M  r    100  
 100  P1    M  0
 r   100   1  1  r  
A2  A1 1  M  
100  
 100    
2
 r   r    r n 
 P1    M 1  M  1  1   
 100   100  n
 r  100  
P1    M  
 r 
3 2
 r   r   r   100 
A3  P1    M 1    M 1  M  1  1   
 100   100   100    100  
 
n n 1 n2
 
 r   r   r   r  n 1  1 
An  P1    M 1    M 1      M 1  M  r    1
 100   100   100   100  M  P 1    
  100   1  1 
r  
n n 1 n2
 r   r   r  
 P1    M 1    1      1    1   1
 100   100   100   100  

 r
 r 
n   r   r 
2
 r 
n 1  n 1  1 
 r  10
 P1 

  M 1  1 
100    100  
  1      1 
100   100 
 
 M  P 1    
 100   r
1  1 
  n 
 10
 11  1  r   
 r 
n    100   
 
 P1   M
 100    r  
 1  1  100  
 
  r  
n
n  1  1   
 r    100  
 P1   M
 100   r  
 1  1   
  100  


But An  0

So: