Geometric sequence: Difference between revisions
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imported>Peter Schmitt (→Sum: wrong i changed to n in formula) |
imported>Peter Schmitt (add application in finance) |
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of (real or complex) numbers | of (real or complex) numbers | ||
such that the quotient of consecutive elements is the same for every pair. | such that the quotient of consecutive elements is the same for every pair. | ||
In finance, compound [[interest (finance)|interest]] generates a geometric sequence. | |||
== Examples == | |||
Examples for geometric sequences are | Examples for geometric sequences are | ||
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* <math> 8, 4, 2, 1, {1\over2}, {1\over4}, {1\over8}, | * <math> 8, 4, 2, 1, {1\over2}, {1\over4}, {1\over8}, | ||
\dots {1\over2^{n-4}}, \dots </math> (infinite, quotient <math>1\over2</math>) | \dots {1\over2^{n-4}}, \dots </math> (infinite, quotient <math>1\over2</math>) | ||
== Application in finance == | |||
== Mathematical notation == | == Mathematical notation == |
Revision as of 18:41, 17 January 2010
A geometric sequence is a (finite or infinite) sequence of (real or complex) numbers such that the quotient of consecutive elements is the same for every pair.
In finance, compound interest generates a geometric sequence.
Examples
Examples for geometric sequences are
- (finite, length 6: 6 elements, quotient 2)
- (finite, length 4: 4 elements, quotient −2)
- (infinite, quotient )
Application in finance
Mathematical notation
A finite sequence
or an infinite sequence
is called geometric sequence if
for all indices i. (The indices need not start at 0 or 1.)
General form
Thus, the elements of a geometric sequence can be written as
Sum
The sum (of the elements) of a finite geometric sequence is
The sum of an infinite geometric sequence is a geometric series: