5
QuizMultiple Choice

Compound Interest and Geometric Sequences — Quiz

Question 5 • Advanced Financial Algebra

If the first term of a geometric sequence is 7 and the common ratio is 2, what is the fourth term?

Answer
A
38,416
B
56
C
28
D
14

Explanation

In a geometric sequence, each term is found by multiplying the previous term by the common ratio. Starting at 7 and multiplying by 2 three times gives 7, 14, 28, 56, so the fourth term is 56, choice B.

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