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Update Unit 2: Sequences, Series, and Financial Applications.md
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# Unit 2: Sequences, Series, and Finicial Applications
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# Unit 2: Sequences, Series, and Financial Applications
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## Terms
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**sequence**: is an ordered set of numbres.
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**Sequence**: is an ordered set of numbres.
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**Arithmetic Sequences**: is a sequence where the difference between each term is constant, and the constant is known as the `common difference`.
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**Arithmetic Sequence**: is a sequence where the difference between each term is constant, and the constant is known as the `common difference`.
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**Geometric Sequences**: is a sequence in which the ratio between each term is constant, and the constant is known as the `common ratio`.
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**Geometric Sequence**: is a sequence in which the ratio between each term is constant, and the constant is known as the `common ratio`.
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**Note:** Not all sequences are arithmetic and geometric!
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**finite series**: finite series have a **finite** number of terms.
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**Finite Series**: finite series have a **finite** number of terms.
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- eg. $`1 + 2 + 3 + \cdots + 10`$.
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**infinite series**: infinite series have **infinite** number of terms.
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**Infinite Series**: infinite series have **infinite** number of terms.
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- eg. $`1 + 2 + 3 + \cdots`$
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Terms in a sequence are numbered with subscripts: $`t_1, t_2, t_3, \cdots t_n`$ where $`t_n`$is the general or $`n^{th}`$ term.
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@ -30,19 +30,19 @@ A sequence is defined recursively if you have to calculate a term in a sequence
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eg. $`t_1 = 1, t_n = t_{n-1} + 1 \text{ for } n \gt 1`$
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## Aritmetic Sequences
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## Arithmetic Sequences
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Basically, you add the **commmon difference** to the current term to get the next term. As such, it follows the following pattern:
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Basically, you add the **common difference** to the current term to get the next term. As such, it follows the following pattern:
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$`a, a+d, a+2d, a+3d, a+4d, \cdots`$. Where $`a`$ is the first term and $`d`$ is the **common difference**.
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As such, the general term of the aritmetic sequence is:
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As such, the general term of the arithmetic sequence is:
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$`\large t_n = a + (n - 1)d`$
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## Geoemetric Sequences
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## Geometric Sequences
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Basically, you multiply by the **common ratio** to the current term toget the next term. As such, it follows the following pattern:
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Multiply by the **common ratio** with the current term to get the next term. As such, it follows the following pattern:
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$`a, ar, ar^2, ar^3, ar^4, c\dots`$. Where $`a`$ is the first term and $`r`$ is the **common ratio**.
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@ -50,7 +50,7 @@ As such, the general term of the geometric sequence is:
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$`\large t_n = a(r)^{n-1}`$
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## Aritmetic Series
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## Arithmetic Series
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An arithmetic series is the sum of the aritmetic sequence's terms.
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@ -60,16 +60,16 @@ $`\large S_n = \dfrac{n(a_1 + a_n)}{2}`$ Or $`\large S_n = \dfrac{n(2a_1 + (n-1)
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## Geometric Series
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- A geoemtric series is created by adding the terms of the geometric sequence.
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- A geometric series is created by adding the terms of the geometric sequence.
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The formula to calulate the series is:
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The formula to calculate the series is:
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$`\large S_n= \dfrac{a(r^n- 1)}{r-1}`$ or $`\large S_n = \dfrac{a(1 - r^n)}{1 - r}`$
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## Series and Sigma Notation
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Its often convient to write summation of sequences using sigma notation. In greek, sigma means to sum.
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It's often convenient to write summation of sequences using sigma notation. In Greek, sigma means to sum.
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eg. $`S_ = u_1 + u_2 + u_3 + u_4 + \cdots + u_n = \sum_{i=1}^{n}u_i`$
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@ -77,7 +77,7 @@ $`\sum_{i=1}^{n}u_i`$ means to add all the terms of $`u_i`$ from $`i=1`$ to $`i=
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Programmers might refer to this as the `for` loop.
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```cpp
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```java
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int sum=0;
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for(int i=1; i<=N; i++) {
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sum += u[i];
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@ -100,7 +100,7 @@ A binomial is a polynomial expression with 2 terms.
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A binomial expansion takes the form of $`(x + y)^n`$, where $`n`$ is an integer and $`x, y`$ can be any number we want.
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A common relationship of binomial expansion is pascal's triangle. The $`nth`$ row of the triangle correspond to the coefficents of $`(x + y)^n`$
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A common relationship of binomial expansion is Pascal's triangle. The $`nth`$ row of the triangle correspond to the coefficents of $`(x + y)^n`$
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```
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1 row 0
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@ -125,7 +125,7 @@ eg. $`\large(a + b)^3 = a^3 + 3a^2b + 3ab^2 + b^3`$
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$`\large I = Prt`$
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- $`P`$ is the principal money (start amount of $)
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- $`P`$ is the principal amount (start amount of $)
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- $`r`$ is the annual interest rate expressed as a decimal (the percent is $`1 - r`$)
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- $`t`$ is the time in years.
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@ -136,7 +136,7 @@ The total amount would be $`P + I`$.
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## Compound Interest
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Compound interest is interest paidon the interest previously earned and the original investment.
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Compound interest is interest paid on the interest previously earned and the original investment.
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```math
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\large A = P(1 + \frac{r}{n})^{nt}
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@ -158,11 +158,11 @@ Compound interest is interest paidon the interest previously earned and the orig
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|Daily|$`n = 365`$|$`nt = 365t`$|
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## Future Value Annuities
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**Definition:** An annuity is a series of equal deposits made at equal time intervales. Each depositis made at the end of each time interval.
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**Definition:** An annuity is a series of equal deposits made at equal time intervals. Each deposit is made at the end of each time interval.
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A `Future Value` usually refers to how much money you will earn in the **future**. (eg. I have $100 dollars, I make desposits of $50 dollars each year with interest, how much will I have after $`5`$ years?)
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A `Future Value` usually refers to how much money you will earn in the **future**. (eg. I have $100, I make deposits of $50 dollars each year with interest, how much will I have after $`5`$ years?)
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Since it is basically the summation of a geometric sequence, we can apply the geometric series formula to get the following formula for future annuities:
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Since it is the summation of a geometric sequence, we can apply the geometric series formula to get the following formula for future annuities:
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```math
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\large
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