Question: Help questions below please thanks: a. Prove this statement: If x is more than one, the sum goes to 1/(1-x) as n gets large. If

Help questions below please thanks:

Help questions below please thanks: a. Prove this statement: "If x is

a. Prove this statement: "If x is more than one, the sum goes to 1/(1-x) as n gets large. If x is equal to or greater than one, the sum explodes as n gets large." b. Consider the present value of a payment of $1 forever, starting next year, when the interest rate is i. The present value is given by: 1 + ... (1 + i) (1 + i)= which can be simplified to: Show the process of simplification. c. Show that: 1 1 +r ( 1 + rill trip ( 1 - 8 ) [;+ + ... Is equal to: VI) =

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!