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Question
Find an approximation of (0.99)5 using the first three terms of its expansion.
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Solution
0.99 = 1 - 0.01
∴ (0.99)5 = (1 - 0.01)5
= 5C0(1)5 - 5C1 (1)4 (0. 01) + 5C2 (1)3 (0.01)2
= 1 – 5 x 0.01 + 10 x 0.0001
= 1 – 0.05 + 0.001
= 1.001 – 0.05
= 0.951
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