Geometric Progression
Define geometric progression.
Geometric progression is a sequence of numbers where any term after the first can be found by multiplying the preceding term by a constant number, known as the common ratio.
How does geometric progression apply to finance?
In finance, geometric progressions are used to calculate compound interest, which utilises the concept of geometric series to determine the growth of investments over a certain period of time.
How can geometric progressions represent exponential growth?
Geometric progressions utilise a common ratio that amplifies each step in the sequence, which can effectively represent exponential growth or doubling patterns found in various real-world contexts like population growth, information technology advancements, and bacterial proliferation.
Real-life Applications of Geometric Progression
Geometric Progression is a sequence of numbers whereby each term following the first can be derived by multiplying the preceding term by a fixed, non-zero number called the common ratio. For example, the series 2, 4, 8, 16, 32 is a geometric progression with a common ratio of 2. It may appear to be a purely academic concept, but it is widely used in our day-to-day life. From calculating compound interest to estimating the number of bacteria in a culture, geometric progression is applied. We will discuss these applications of geometric progression in detail in this article.
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