The diagram shown above quickly explains the dynamics of the geometric progression, a type of economic rent where the amount R increases for each period of time being multiplied by the reason q. Consequently, at time 1 the amount will be R, at time 2 the amount will be equal to R * q, at time 3 the amount will be equal to R * (q ^ 2), at time 4 the amount will be equal to R * (q ^ 3), at the time n the amount will be equal to R * [q ^ (n-1)].

What are the general formulas of geometric rents?

Formula of current geometric value:

Geometric yield upright formula: