Introduction to Geometric Sequences

What you’ll learn to do: Use formulas to make calculations for an geometric sequence or find a term in the sequence

Many jobs offer an annual cost-of-living increase to keep salaries consistent with inflation. Suppose, for example, a recent college graduate finds a position as a sales manager earning an annual salary of $26,000. He is promised a 2% cost of living increase each year. His annual salary in any given year can be found by multiplying his salary from the previous year by 102%. His salary will be $26,520 after one year; $27,050.40 after two years; $27,591.41 after three years; and so on. When a salary increases by a constant rate each year, the salary grows by a constant factor. In this section we will review sequences that grow in this way.


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