APPLICATION OF NUMERICAL SEQUENCES IN ECONOMICS

Abstract

This article focuses on the use of numerical sequences in economics. Analysis of economic processes and their planning requires the use of mathematical tools. Also, many people have heard of arithmetic progression, but not everyone can interpret it in economics. Arithmetic progression is used to model economic processes that have a tendency to constantly increase and decrease. Not only arithmetic progression, but also geometric progression can be used in economics. The geometric progression section also presents methods for finding the terms of the geometric progression studied in the section and methods for finding the sum of the terms of their formulas. The importance of numerical sequences, progressions and their microeconomic analysis, as well as operations in business planning, is also covered. Numerical sequences are an important tool for understanding the dynamics of economic growth and effective management. The application of numerical sequences to economics can be expressed in the following way: there are formulas for finding interest rates on loans from banks and loan amortizations. Two different methods are used to calculate these interest rates. They are arithmetic progression for simple interest, and geometric progression for compound interest. This process can be called debt amortization in short. In debt amortization, it can also be used to find the percentage of the remaining balance of a loan from a bank, variable interest rates, and the amount of interest that remains after the loan is paid.