Question

NEED HELP WITH THIS ASAP PLEASE!!!
Describe the relationship between the mathematics of calculating compound interest, and the mathematics behind analysing geometric sequences. How might compound interest be described as a problem of applied geometric sequences?

Answer 1

imagine you invest \(p\) dollars at \(r\) annual rate of interest, where of course \(r\) is a decimal (not a percent)
then in one year you have \(p(1+r)\) dollars
in two you will have \(p(1+r)^2\) and in \(t\) years you will have \(p(1+r)^t\)

Answer 2

your geometric sequence has as its first term \(p\) the starting principle, and as a common ratio \(1+r\)