Image source: http://www.state.de.us/sos/money.gif
The value of an untouched bank account, such as a CD or bond, forms a geometric
sequence because the value in the account increases by a common multiple each
year. For example, a $1000 account earning 3% each year, will have 1000*1.03
= $1030 after the first year; 1030*1.03 = $1060.90 after the second year; 1060.90*1.03
= $1092.73 after the third year; and so on.
Image source: http://www.colorado.edu/ScienceDiscovery/convection/images/balloon.jpg
The height of a hot air balloon over time represents a geometric sequence because
its change in elevation is a certain percentage of its previous height. For example,
suppose a balloon reaches a height of 200 feet for its first minute, and continues
to rise 40% of its previous height for the remainder of the flight. That means
after the first minute, it will rise 200*0.40 = 80 more feet; after the second
minute, it will rise 80*0.40 = 32 more feet; and so on.
