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( 1 2 ) 10 = 1 1 , 024 ( 1 2 ) 20 = 1 1 , 048 , 576 ( 1 2 ) 30 = 1 1 , 073 , 741 , 824

As n gets very large, r n gets very small. We say that, as n increases without bound, r n approaches 0. As r n approaches 0, 1 r n approaches 1. When this happens, the numerator approaches a 1 . This give us a formula for the sum of an infinite geometric series.

Formula for the sum of an infinite geometric series

The formula for the sum of an infinite geometric series with −1 < r < 1 is

S = a 1 1 r

Given an infinite geometric series, find its sum.

  1. Identify a 1 and r .
  2. Confirm that 1 < r < 1.
  3. Substitute values for a 1 and r into the formula, S = a 1 1 r .
  4. Simplify to find S .

Finding the sum of an infinite geometric series

Find the sum, if it exists, for the following:

  1. 10 + 9 + 8 + 7 +
  2. 248.6 + 99.44 + 39.776 +  
  3. k = 1 4 , 374 ( 1 3 ) k 1
  4. k = 1 1 9 ( 4 3 ) k
  1. There is not a constant ratio; the series is not geometric.
  2. There is a constant ratio; the series is geometric. a 1 = 248.6 and r = 99.44 248.6 = 0.4 , so the sum exists. Substitute a 1 = 248.6 and r = 0.4 into the formula and simplify to find the sum:

    S = a 1 1 r S = 248.6 1 0.4 = 414. 3 ¯
  3. The formula is exponential, so the series is geometric with r = 1 3 . Find a 1 by substituting k = 1 into the given explicit formula:

    a 1 = 4 , 374 ( 1 3 ) 1 1 = 4 , 374

    Substitute a 1 = 4 , 374 and r = 1 3 into the formula, and simplify to find the sum:

    S = a 1 1 r S = 4 , 374 1 ( 1 3 ) = 3 , 280.5
  4. The formula is exponential, so the series is geometric, but r > 1. The sum does not exist.
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Finding an equivalent fraction for a repeating decimal

Find an equivalent fraction for the repeating decimal 0. 3 ¯

We notice the repeating decimal 0. 3 ¯ = 0.333... so we can rewrite the repeating decimal as a sum of terms.

0. 3 ¯ = 0.3 + 0.03 + 0.003 + ...

Looking for a pattern, we rewrite the sum, noticing that we see the first term multiplied to 0.1 in the second term, and the second term multiplied to 0.1 in the third term.

...

Notice the pattern; we multiply each consecutive term by a common ratio of 0.1 starting with the first term of 0.3. So, substituting into our formula for an infinite geometric sum, we have

S n = a 1 1 r = 0.3 1 0.1 = 0.3 0.9 = 1 3 .
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Find the sum, if it exists.

k = 1 0.76 k + 1

The series is not geometric.

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k = 1 ( 3 8 ) k

3 11

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Solving annuity problems

At the beginning of the section, we looked at a problem in which a couple invested a set amount of money each month into a college fund for six years. An annuity    is an investment in which the purchaser makes a sequence of periodic, equal payments. To find the amount of an annuity, we need to find the sum of all the payments and the interest earned. In the example, the couple invests $50 each month. This is the value of the initial deposit. The account paid 6% annual interest , compounded monthly. To find the interest rate per payment period, we need to divide the 6% annual percentage interest (APR) rate by 12. So the monthly interest rate is 0.5%. We can multiply the amount in the account each month by 100.5% to find the value of the account after interest has been added.

We can find the value of the annuity right after the last deposit by using a geometric series with a 1 = 50 and r = 100.5 % = 1.005. After the first deposit, the value of the annuity will be $50. Let us see if we can determine the amount in the college fund and the interest earned.

Questions & Answers

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In economics, a perfect market refers to a theoretical construct where all participants have perfect information, goods are homogenous, there are no barriers to entry or exit, and prices are determined solely by supply and demand. It's an idealized model used for analysis,
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When MP₁ becomes negative, TP start to decline. Extuples Suppose that the short-run production function of certain cut-flower firm is given by: Q=4KL-0.6K2 - 0.112 • Where is quantity of cut flower produced, I is labour input and K is fixed capital input (K-5). Determine the average product of lab
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Extuples Suppose that the short-run production function of certain cut-flower firm is given by: Q=4KL-0.6K2 - 0.112 • Where is quantity of cut flower produced, I is labour input and K is fixed capital input (K-5). Determine the average product of labour (APL) and marginal product of labour (MPL)
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Quantity demanded refers to the specific amount of a good or service that consumers are willing and able to purchase at a give price and within a specific time period. Demand, on the other hand, is a broader concept that encompasses the entire relationship between price and quantity demanded
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Economic growth as an increase in the production and consumption of goods and services within an economy.but Economic development as a broader concept that encompasses not only economic growth but also social & human well being.
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In economics, the contract curve refers to the set of points in an Edgeworth box diagram where both parties involved in a trade cannot be made better off without making one of them worse off. It represents the Pareto efficient allocations of goods between two individuals or entities, where neither p
Cornelius
In economics, the contract curve refers to the set of points in an Edgeworth box diagram where both parties involved in a trade cannot be made better off without making one of them worse off. It represents the Pareto efficient allocations of goods between two individuals or entities,
Cornelius
Suppose a consumer consuming two commodities X and Y has The following utility function u=X0.4 Y0.6. If the price of the X and Y are 2 and 3 respectively and income Constraint is birr 50. A,Calculate quantities of x and y which maximize utility. B,Calculate value of Lagrange multiplier. C,Calculate quantities of X and Y consumed with a given price. D,alculate optimum level of output .
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Answer
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c
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the market for lemon has 10 potential consumers, each having an individual demand curve p=101-10Qi, where p is price in dollar's per cup and Qi is the number of cups demanded per week by the i th consumer.Find the market demand curve using algebra. Draw an individual demand curve and the market dema
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suppose the production function is given by ( L, K)=L¼K¾.assuming capital is fixed find APL and MPL. consider the following short run production function:Q=6L²-0.4L³ a) find the value of L that maximizes output b)find the value of L that maximizes marginal product
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Source:  OpenStax, Precalculus. OpenStax CNX. Jan 19, 2016 Download for free at https://legacy.cnx.org/content/col11667/1.6
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