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Math Help - infinite series and interest

  1. #1
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    infinite series and interest

    infinite series and interest-screen-shot-2013-05-05-4.57.39-pm.png
    infinite series and interest-screen-shot-2013-05-05-4.58.00-pm.png

    The above starts with S=1 + a^2 + a^3 + ... + a^n.

    I understand how the first part (dealing with S) works but I dont understand how it relates to the expression below the paragraph.

    1-a^{n+1} in the second expression after the paragraph must correspond with 1- (1+\frac{r}{n})^{-nt} and (1-a) must correspond to (1-(1+\frac{r}{n})^{-1})

    but im not sure what role the first term: x(1+\frac{r}{n})^{-1} plays or how we get to the third expression at the bottom.
    Last edited by kingsolomonsgrave; May 5th 2013 at 01:11 PM.
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  2. #2
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    Re: infinite series and interest

    On the bottom, you do not have the equivalent of S-aS shown for the P equation. The answer lies in what would be on the left hand side.
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