ABSTRACT
This chapter aims to understand the difference between arithmetic and geometric series. To understand the time value of an investment, which is the present value and the future value of money, people first need to understand how to use series, especially the geometric series. Carl Friedrich Gauss was the inventor of normal distribution, and developer of the geometry of curved spaces which was later used by Einstein. The story goes that when Gauss was only 10 years old, his teacher asked his pupils to add up all the integers between 1 and 100. An arithmetic series is a summation of a sequence of numbers in which the difference between any two consecutive terms is constant. A geometric series is a summation of a sequence of numbers in which the ratio between two consecutive terms is constant.
