11.3 Geometric sequences  (Page 9/6)

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.

Finding common ratios

The yearly salary values described form a geometric sequence because they change by a constant factor each year. Each term of a geometric sequence increases or decreases by a constant factor called the common ratio . The sequence below is an example of a geometric sequence because each term increases by a constant factor of 6. Multiplying any term of the sequence by the common ratio 6 generates the subsequent term.

Writing terms of geometric sequences

Now that we can identify a geometric sequence, we will learn how to find the terms of a geometric sequence if we are given the first term and the common ratio. The terms of a geometric sequence can be found by beginning with the first term and multiplying by the common ratio repeatedly. For instance, if the first term of a geometric sequence is $a_1=-2$ and the common ratio is $r=\mathrm{4,}$ we can find subsequent terms by multiplying $-2\cdot 4$ to get $-8$ then multiplying the result $-8\cdot 4$ to get $-32$ and so on.