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Exercise: Applications · Q25

Q.Using the binomial theorem, show that (1.2)4000>800(1.2)^{4000} > 800.

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Write (1.2)4000=(1+0.2)4000(1.2)^{4000}=(1+0.2)^{4000}. Since every term of this expansion is positive (0.2>00.2>0), dropping all terms after the first two only decreases the total: (1.2)4000≥4000C0+4000C1(0.2)=1+4000×0.2=1+800=801(1.2)^{4000}\ge{}^{4000}C_0+{}^{4000}C_1(0.2)=1+4000\times0.2=1+800=801. Since 801>800801>800, and the true value is at least 801801 (and in fact far larger, o …

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