Calculus with Applications (10th Edition)

Published by Pearson
ISBN 10: 0321749006
ISBN 13: 978-0-32174-900-0

Chapter 3 - The Derivative - 3.1 Limits - 3.1 Exercises - Page 139: 88

Answer

$$ \begin{aligned} \lim _{n \rightarrow \infty} &\left[R\left[\frac{1-(1+i)^{-n}}{i}\right]\right] \\ &=\frac{R}{i} \lim _{n \rightarrow \infty}\left[1-(1+i)^{-n}\right] \\ &=\frac{R}{i}\left[\lim _{n \rightarrow \infty} 1-\lim _{n \rightarrow \infty}(1+i)^{-n}\right] \\ &=\frac{R}{i}[1-0]=\frac{R}{i} \end{aligned} $$

Work Step by Step

$$ R\left[\frac{1-(1+i)^{-n}}{i}\right] $$ the limit of this present value equation as n approaches infinity is: $$ \begin{aligned} \lim _{n \rightarrow \infty} &\left[R\left[\frac{1-(1+i)^{-n}}{i}\right]\right] \\ &=\frac{R}{i} \lim _{n \rightarrow \infty}\left[1-(1+i)^{-n}\right] \\ &=\frac{R}{i}\left[\lim _{n \rightarrow \infty} 1-\lim _{n \rightarrow \infty}(1+i)^{-n}\right] \\ &=\frac{R}{i}[1-0]=\frac{R}{i} \end{aligned} $$
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