IB Math AI Worksheet 1.4 - Financial Applications of Geometric Sequences and Series

IB Math AI SL 1.4 – Financial Applications of Geometric Sequences and Series Worksheet

Topic: Number and Algebra
Level: IB Mathematics: Applications and Interpretation (SL)
File Type: Printable Worksheet / Student Practice Sheet

Overview

This worksheet focuses on real-world financial applications of geometric sequences and series, extending students’ understanding of exponential growth and decay within the context of compound interest, depreciation, and investment modeling.
Learners will apply geometric reasoning to calculate interest, future values, loan payments, and asset depreciation, consolidating theoretical and applied mathematical skills essential for IB Math AI SL Topic 1.4.

The worksheet builds directly on previous lessons on geometric sequences, bridging pure mathematics with practical financial literacy. It is ideal for reinforcing classroom instruction, exam review, or self-paced learning.

Learning Objectives

By completing this worksheet, students will be able to:

• Apply the compound-interest formula to compute future and present values.
• Model exponential growth and decay using geometric-sequence relationships.
• Distinguish between annual, quarterly, and monthly compounding.
• Calculate depreciation of assets using multiplicative factors.
• Interpret real-life financial scenarios using the language of geometric progressions.

What’s Included

• Guided practice questions on compound and periodic interest.
• Word problems involving investment growth and car depreciation.
• Exercises determining annual rates from compound data.
• Worked examples illustrating how geometric formulas apply to financial settings.
• Key-answer section with full solutions for review and independent correction.
• Clean, printable layout suitable for classwork, homework, or revision sessions.

Topics Covered

• Compound-interest formula and geometric-sequence equivalence.
• Annual, semiannual, quarterly, and monthly compounding.
• Depreciation modeled through geometric decay.
• Determining unknown rates, periods, and final values.
• Real-world applications in banking, investment, and personal finance.

Why You’ll Love It

Perfectly aligned with IB Math AI SL Topic 1: Number and Algebra, this worksheet links mathematical structure with everyday decision-making in finance. It helps students visualize exponential change, deepening both conceptual understanding and practical competence. Excellent for use as a class activity, homework assignment, or pre-exam refresher.

Tags

IB Math AI SL, IB Mathematics, Number and Algebra, Financial Mathematics, Compound Interest, Depreciation, Exponential Growth, Exponential Decay, Geometric Sequences, Geometric Series, Future Value, Present Value, Investment Math, Personal Finance, Financial Applications, IB Math Worksheet, Printable Math Worksheet, Student Practice Sheet, IB Topic 1, Full Marks Education