QUESTION 4 of 5: You have insurance premiums of $250 due quarterly. How much will you pay annually?
1 answer:
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Answer:
We want to find:
Here we can use Stirling's approximation, which says that for large values of n, we get:
Because here we are taking the limit when n tends to infinity, we can use this approximation.
Then we get.
Now we can just simplify this, so we get:
And we can rewrite it as:
The important part here is the exponent, as n tends to infinite, the exponent tends to zero.
Thus:
Answer:
or <em>0.35</em>
Step-by-step explanation:
Now simplify.
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