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TM 107
BUSINESS MATHEMATICS
CHAPTER 2

Arithmetic and Geometric
Sequences
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Outcomes
Use algebra and graphs for dealing with
modeling in business.
Provide a precise way of describing a
range of situations.
Communicate ideas and solutions
Understand the calculations required
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Objectives
To explain the terms sequence, arithmetic and
geometric sequence
Identify arithmetic and geometric sequence
Calculate the terms in arithmetic and geometric
sequence
Calculate the sum of terms arithmetic and
geometric sequence
Apply the concepts of arithmetic and geometric
sequences to some common problems in daily life.

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Content
1. Introduction
2. Arithmetic Sequence
3. nth term and sum of first n terms of an
arithmetic sequence
4. Geometric sequence
5. nth term and sum of first n terms of an
Geometric sequence

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1. Introduction
Sequence
Also known as progression
List of numbers arranged in a specified order.
Two of common sequences:
Arithmetic
Geometric
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2. Arithmetic Sequence
Difference (d) between any term and the
preceding terms is the same throughout.

d = T
n
T
n 1

3. Nth term and sum of first n
terms of an arithmetic sequence
Basic arithmetic sequence is given by:
a, a+d, a+2d,.., a+(n-1)d
nth terms (T
n
) is given by:
T
n
= a + (n-1)d
Sum of the first n terms (S
n
) is given by:
S
n
= [n/2]*[ 2a + (n-1)d]

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3. Nth term and sum of first n
terms of an arithmetic sequence
EXAMPLE
Assume that you borrow RM10,000 from financial
institution at stated interest of 1.5% per month and must
repay RM1,000 per month plus interest due.
(a) Write down the formula for the nth payment.
(b) What is the final payment?
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3. Nth term and sum of first n
terms of an arithmetic sequence
SOLUTION
Note that;
1
st
payment = RM1,000 + (RM 10,000 X 1.5%) = RM1,150 = a
2
nd
payment = RM 1,000 + (RM 9,000 X 1.5%) = RM 1,135
Thus, the difference, d = 1135 1150 = -15

(a) The nth payment, T
n
= a + (n-1)d
= RM1150 + (n-1)(-15)
= RM1150 15n +15
T
n
= RM1165 - 15n

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3. Nth term and sum of first n
terms of an arithmetic sequence
SOLUTION
Note that;
1
st
payment = RM1,000 + (RM 10,000 X 1.5%) = RM1,150 = a
2
nd
payment = RM 1,000 + (RM 9,000 X 1.5%) = RM 1,135
Thus, the difference, d = 1135 1150 = -15

(b) Final payment, n = 10, Therefore;
T
10
= RM 1165 15n
= RM 1165 15 (10)
= RM 1015
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4. Geometric Sequence
Ratio (r) of each term to the preceding
term is the same throughout.

r = T
n
/ T
n-1

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5. Nth term and sum of first n
terms of a geometric sequence
Basic geometric sequence is given by:
a, ar, ar
2
, ar
3
,.
nth term is given by:
T
n
= ar
n-1
Sum of the first n terms is given by:
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If r > 1;
S
n
= [a(r
n
1)]*[1/ (r -1)]
If r <1;
S
n
= [a(1- r
n
)]*[1/ (1 - r)]
5. Nth term and sum of first n
terms of a geometric sequence
EXAMPLE

The sum of the first ten terms of a
geometric progression is 2,046. If the
common ratio is given by 2, find:
(a) The first term
(b) The sum of the next three terms.
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5. Nth term and sum of first n
terms of a geometric sequence
SOLUTION
(a) The first term
Given r = 2 and from S
n
= [a(r
n
1)]*[1/ (r -1)]
a = [S
n
(r-1)] / [r
n
1]
= [S
10
(r-1)] / [r
10
1]
= [2046(2-1)] / [2
10
1]
a = 2

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5. Nth term and sum of first n
terms of a geometric sequence
SOLUTION
(b) The sum of the next three terms.
Given S
10
= 2046,
Then the next three terms, S
13

Thus, the sum of the next three terms is given by;
S
13
- S
10
= {[2*(2
13
1)] / [2-1]} 2046
= 16382 2046
S
13
- S
10
= 14,336

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