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Sequences, Series, Finance

CHAPTER 1
Chapter 1: Sequences, Series, Finance


     Content:
         Introduction
         Sequences
             Basic definitions
             Limit of a sequence
         Series
             Partial sums
             Series and convergence of series



BCOR 110, A-2011                                 2
Chapter 1: Sequences, Series, Finance


     Content-continued
         Finance
               Simple interest and compound interest
               Periodic payments
               Loan repayments, redemption tables
               Investment projects
               Depreciation




BCOR 110, A-2011                                        3
1. Introduction

     Sequences and Series play important roles in
      business applications
     Several finance problems are approached
      through sequences and series
     This chapter will treat some of these topics




BCOR 110, A-2011                                     4
CHO1- PART1

SEQUENCES


              5
2. Sequences and Series-Basic
              Definitions




BCOR 110, A-2011                     6
Reminder

  refers to the set of all natural numbers.
 There is no agreement about whether to
  include zero in the set of natural numbers:
   some define the natural numbers to be
    the positive integers {1, 2, 3, ...},
      Notations:
   while for others the term designates the non-
    negative integers {0, 1, 2, 3, ...}.
      Notations:


                                                    7
2. Sequences and Series-Basic
              Definitions




BCOR 110, A-2011                     8
2. Sequences and Series-Illustrative
            examples




BCOR 110, A-2011                       9
2. Sequences and Series-Illustrative
            examples




BCOR 110, A-2011                       10
2. Sequences and Series-Illustrative
            examples




BCOR 110, A-2011                       11
Arithmetic and Geometric
                Sequences




BCOR 110, A-2011                    12
Arithmetic and Geometric
                Sequences




BCOR 110, A-2011                    13
Arithmetic and Geometric
                Sequences




BCOR 110, A-2011                    14
Arithmetic and Geometric
                Sequences




BCOR 110, A-2011                    15
Arithmetic and Geometric
                Sequences




BCOR 110, A-2011                    16
Arithmetic and Geometric
                Sequences




BCOR 110, A-2011                    17
Arithmetic and Geometric
                Sequences




BCOR 110, A-2011                    18
Arithmetic and Geometric
                Sequences




  Under these assumptions, what would be the year where the firms production first
  exceeds 55,000 DVD players?




BCOR 110, A-2011                                                                      19
Arithmetic and Geometric
                Sequences




BCOR 110, A-2011                    20
Arithmetic and Geometric
                Sequences




BCOR 110, A-2011                    21
Increasing/Decreasing Sequences




BCOR 110, A-2011                   22
Monotone Sequences




BCOR 110, A-2011               23
Monotone Sequences




BCOR 110, A-2011               24
Monotone Sequences




BCOR 110, A-2011               25
Monotone Sequences




BCOR 110, A-2011               26
Monotone Sequences




BCOR 110, A-2011               27
Monotone Sequences




BCOR 110, A-2011               28
Monotone Sequences




BCOR 110, A-2011               29
Bounded Sequences




BCOR 110, A-2011                30
Monotone Sequences




BCOR 110, A-2011               31
Monotone Sequences




BCOR 110, A-2011               32
Monotone Sequences




BCOR 110, A-2011               33
Monotone Sequences




BCOR 110, A-2011               34
Monotone Sequences




BCOR 110, A-2011               35
Limit of a sequence




BCOR 110, A-2011                   36
Limit of a Sequence




BCOR 110, A-2011                   37
Limit of a Sequence




BCOR 110, A-2011                   38
Limit of a Sequence




       The terms of the sequence {an} tend to number 1.



BCOR 110, A-2011                                          39
Limit of a Sequence




BCOR 110, A-2011                   40
Limit of a Sequence




BCOR 110, A-2011                   41
Limit of a Sequence




BCOR 110, A-2011                   42
Limit of a Sequence




BCOR 110, A-2011                   43
Limit of a Sequence




BCOR 110, A-2011                   44
Limit of a Sequence




BCOR 110, A-2011                   45
Limit of a Sequence




BCOR 110, A-2011                   46
Limit of a Sequence

     The definition of a limit is not appropriate for
      determining its value.
     It can be used to confirm that some guessed
      value a is in fact the limit of a certain
      sequence.




BCOR 110, A-2011                                         47
Limit of a Sequence




BCOR 110, A-2011                   48
Limit of a Sequence




BCOR 110, A-2011                   49
Limit of a Sequence




BCOR 110, A-2011                   50
Limit of a Sequence




BCOR 110, A-2011                   51
Limit of a Sequence




BCOR 110, A-2011                   52
Limit of a Sequence




BCOR 110, A-2011                   53
Limit of a Sequence




BCOR 110, A-2011                   54
Limit of a Sequence




BCOR 110, A-2011                   55
Limit of a Sequence




BCOR 110, A-2011                   56
Limit of a Sequence




BCOR 110, A-2011                   57
Limit of a Sequence




BCOR 110, A-2011                   58
Limit of a Sequence




BCOR 110, A-2011                   59
Limit of a Sequence




BCOR 110, A-2011                   60
Limit of a Sequence




BCOR 110, A-2011                   61
Limit of a Sequence-Example 2.10-
                 continued




BCOR 110, A-2011                        62
Limit of a Sequence-Example 2.10-
                   continued




BCOR 110, A-2011                     63
Limit of a Sequence-Example 2.10-
             continued




BCOR 110, A-2011                    64
Limit of a Sequence-Example 2.10-
             continued




BCOR 110, A-2011                    65
Limit of a Sequence-Example 2.11




BCOR 110, A-2011                    66
Some Frequently Used Limits




BCOR 110, A-2011                 67

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Ch01 part 1 sequences