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: 89

Answer

$$ \begin{aligned} \lim _{n \rightarrow \infty} &\left[\frac{R}{i-g}\left[1-\left(\frac{1+g}{1+i}\right)^{n}\right]\right] \\ &=\frac{R}{i-g} \lim _{n \rightarrow \infty}\left[1-\left(\frac{1+g}{1+i}\right)^{n}\right] \\ &=\frac{R}{i-g}\left[\lim _{n \rightarrow \infty} 1-\lim _{n \rightarrow \infty}\left(\frac{1+g}{1+i}\right)^{n}\right] \quad\quad\left[\begin{array}{c}{\text{ assuming }} \\ {i \gt g}\end{array}\right]\\ & =\frac{R}{i-g} \left[ 1-0\right]\\ &=\frac{R}{i-g}. \end{aligned} $$

Work Step by Step

$$ \frac{R}{i-g}\left[1-\left(\frac{1+g}{1+i}\right)^{n}\right] $$ The limit of the expression above as $n$ approaches infinity is $$ \begin{aligned} \lim _{n \rightarrow \infty} &\left[\frac{R}{i-g}\left[1-\left(\frac{1+g}{1+i}\right)^{n}\right]\right] \\ &=\frac{R}{i-g} \lim _{n \rightarrow \infty}\left[1-\left(\frac{1+g}{1+i}\right)^{n}\right] \\ &=\frac{R}{i-g}\left[\lim _{n \rightarrow \infty} 1-\lim _{n \rightarrow \infty}\left(\frac{1+g}{1+i}\right)^{n}\right] \quad\quad\left[\begin{array}{c}{\text{ assuming }} \\ {i \gt g}\end{array}\right]\\ & =\frac{R}{i-g} \left[ 1-0\right]\\ &=\frac{R}{i-g}. \end{aligned} $$
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