1. Number and Algebra

Financial Applications Of Sequences — Quiz

Test your understanding of financial applications of sequences with 5 practice questions.

Practice Questions

Question 1

In a savings account, a fixed amount is deposited at the end of each period and the balance grows in a regular pattern. What type of sequence usually models the total amount saved over time when the same amount is added each period and interest is ignored?

Question 2

A bank account has a balance of $100$ and earns no interest. If $20$ is added at the end of each month, what is the balance after the first three months?

Question 3

A person invests $500$ in an account that grows by $5\%$ each year. What kind of sequence best models the account value over time?

Question 4

Which formula gives the general term of an arithmetic sequence with first term $a_1$ and common difference $d$?

Question 5

A borrower repays a loan with equal payments made at regular intervals. In financial modelling, what is the most likely sequence pattern for the unpaid balance if no interest is charged?