


Each term of a geometric sequence increases or decreases by a constant factor called the common ratio. The yearly salary values described form a geometric sequence because they change by a constant factor each year. In this section, we will review sequences that grow in this way. When a salary increases by a constant rate each year, the salary grows by a constant factor. His salary will be $26,520 after one year $27,050.40 after two years $27,591.41 after three years and so on.

His annual salary in any given year can be found by multiplying his salary from the previous year by 102%. He is promised a 2% cost of living increase each year.

Suppose, for example, a recent college graduate finds a position as a sales manager earning an annual salary of $26,000. Many jobs offer an annual cost-of-living increase to keep salaries consistent with inflation. Use an explicit formula for a geometric sequence.Use a recursive formula for a geometric sequence.List the terms of a geometric sequence.Find the common ratio for a geometric sequence.
