Write the sequences {Xn} for n = 1, 2, 3, where
(a) Xn = an
(b) Xn = (1 + 1/n)n
(c) Xn = (−1)n−1/n
(d) Are the sequences {Xn}, given above, convergent?
(e) Suppose the yearly interest rate is 5%. Let ∆ be a time interval that repeats n times during 1 year, such that we have:
n∆ = 1
i. What is the gross return to 1$ invested during ∆?
ii. Now suppose 5% is the annual yield on a T-bill with maturity ∆. What is the compound return during one year?