Sequence in which the ratio r, not equal to 1, of two consecutive terms is a constant.
Example
If an amount M is invested at an interest rate of i% compounded annually, then the sequence of values of this investment after n years is given by : S = {M · (0.01i), M · (0.01i)², M · (0.01i)³, ...}. The common ratio r of this sequence is r = 1 + 0.01 · i or r = 1.01 · i.
The value of this investment after n years is given by [latex]M · (1 + 0.01 · i)^n[/latex] or [latex]M · (1.01 · i)^n[/latex].
