Where an arithmetic sequence adds the same amount every step, a geometric sequence MULTIPLIES by the same amount every step. A population doubling every year, a bouncing ball losing 20% of its height on every bounce, money compounding in a bank account — all geometric. That constant multiplier is the common ratio, . The difference matters enormously over time. Start at 100 and add 100 each step, and after 10 steps you have 1100. Start at 100 and double each step, and after 10 steps you have 102 400. Geometric sequences are the discrete version of the exponential functions from the previous unit, and they are the foundation of all the financial mathematics later in this unit.
The common ratio
Find by dividing any term by the one right before it: . This must come out the same for every consecutive pair for the sequence to be geometric. Divide in the right order, later term over earlier term: for the ratio is , not 2. The ratio can be a whole number, a fraction, a decimal or a negative number, and it is often hidden in a percentage. A increase keeps the whole amount and adds , so ; a decrease keeps , so .
| Each step the quantity... | Common ratio r | Example terms |
|---|---|---|
| grows by 6% | 1.06 | 1000, 1060, 1123.60 |
| shrinks by 20% | 0.8 | 500, 400, 320 |
| doubles | 2 | 3, 6, 12 |
| halves | 0.5 | 64, 32, 16 |
| is multiplied by −3 | −3 | 1, −3, 9 |
The explicit formula
Starting from , to reach the th term you multiply by a total of times. This is the same fence-post idea as for arithmetic sequences, but with multiplication: , , , , so the exponent is always one less than the term number. Rewriting it as shows that a geometric sequence is an exponential function of , sampled only at whole numbers: its dots lie on an exponential curve. The recursive version is simply , .
Growth vs. decay
- Terms get larger in size
- Example: — doubling
- Models population growth, compound interest
- Each term is further from 0 than the last, and the gaps keep widening
- Graph of the dots bends upward like an exponential growth curve
- Terms shrink toward 0
- Example: — losing 10% each step
- Models depreciation, radioactive decay, bounce heights
- The terms get closer and closer to 0 but never reach it
- Graph of the dots flattens toward the horizontal axis

Solving for unknowns
Given two terms that are not consecutive, divide them: the later term over the earlier term equals raised to the gap in position. If and , then , so . Watch the parity of the gap. An odd gap has one real root ( gives ), but an even gap has two: gives or , and both produce valid sequences unless the question rules one out. To find which term has a given value, isolate the power and match bases, just like the exponential equations you already solved: gives , so and .
- Confirm the sequence is geometric: check that at least two consecutive ratios agree.
- Identify and , converting any percentage to a ratio first.
- In context, decide which term is the starting value. If is the value at time 0, then the value after steps is .
- Substitute into , or set it equal to a known value and solve for or .
- Check your answer on one of the given terms.
That third step causes the most lost marks. A car worth 24 000 dollars that loses 15% each year is worth after 3 years. If you list the values as a sequence starting with the purchase price, , then "after 3 years" is , because three multiplications have happened. The formula exponent always counts the number of multiplications, so whenever a context counts steps from zero, the step number is the exponent. A bouncing ball dropped from 2 m that rebounds to 75% of its height reaches m on the first bounce and m on the fourth.