Arithmetic and Geometric Sequences with Compound Interest

Which is a purpose of using a geometric recurrence relation in finance ?

• To calculate simple interest on investments

• To model compound interest for investments or loans

• To determine the principal amount of a loan

• To track the stock market prices

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CCSS.HSF.BF.A.2

What occurs in a sequence when the quantity being modelled increases or decreases by the same percentage at regular intervals?

• Linear growth

• Geometric growth or decay

• Exponential shift

• Arithmetic progression

A sequence which is made by adding a common difference to each term is called:

• geometric

• arithmetic

• explanatory

• compound

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CCSS.HSF.BF.A.2

Write an equation that models the following situation:
Samantha's hair was known to grow very rapidly. It began at a length of 6 in and grew at a rate of 14% a week.

• y=6(0.14)^x

• y=6(1+14)^x

• y=6(1.14)^x

• y=6(0.86)^x

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CCSS.HSF.LE.A.2

What kind of sequence is illustrated below?
 400, 200, 100, 50, 25, ...

• Arithmetic

• Geometric

• Neither

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CCSS.HSF.BF.A.2

Find the 25th term of the sequence if a₁ = 5 and d = 0.5

• 18

• 17

• 15

• 14

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CCSS.HSF.BF.A.2

What is the common ratio of the geometric sequence below?
5, 25, 125, 625...

• 25

• 20

• 5

• 4

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CCSS.HSF.BF.A.2

Which kind of sequence has a common ratio?

• Arithmetic

• Geometric

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CCSS.HSF.BF.A.2

Which kind of sequence has a common difference?

• Arithmetic

• Geometric

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CCSS.HSF.BF.A.2

Create the formula for the geometric sequence:
1, 4, 16, 64...

• a_n = 3^n-1

• a_n = 2^n-1

• a_n = 5^n-1

• a_n = 4^n-1

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