Use the Formula for the General Term of a Geometric $$\mathbf { a } _ { 1 }$$

question 94

Multiple Choice

Use the Formula for the General Term of a Geometric SequenceUse the formula for the general term (the nth term) of a geometric sequence to find the indicated term of the
sequence with the given first term, $$\mathbf { a } _ { 1 }$$ , and common ratio, r.
- $$a _ { n } = 3 ^ { n }$$

• A) geometric, \(r = 3\)
• B) arithmetic, \(\mathrm { d } = 3\)
• C) geometric, \(r = 4\)
• D) neither

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Definitions:

Market Conversion Value

The current market value of a convertible security if it were converted into the underlying shares of stock today.

Conversion Ratio

The conversion ratio is the number of shares an investor receives when converting a convertible security, such as a convertible bond or preferred stock, into common stock.

Bond Indenture

A legal contract detailing the terms and conditions under which a bond is issued, including the obligations of the issuer and the rights of the bondholders.

Sinking Fund

A sinking fund is a method by which a company sets aside money over time to retire its preferred stock, bonds, or debentures before or at maturity, to ensure investment security for bondholders.