Question 1172428:
Geometric series occur naturally in the solution of problems in
finance. A geometric sequence with first term a, common ratio R,
and n terms, is given as follows:
𝑎, 𝑎𝑅, 𝑎𝑅^2, … , 𝑎𝑅^(𝑛−1)---->(2)
Find the sum of the geometric sequence in (2), denoted by
𝑆𝑛.
In finance problems, the number n may be the number of months or
years. The number R is the compounding factor given by (1+r),
related to the rate of interest, r. Each finance problem is unique and
applying the geometric series formula upfront may lead to wrong
answers.
Answer by ikleyn(52879)   (Show Source):
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