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Question

Find an approximation of (0.99)5 using the first three of its expansion.

A
0.95
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B
0.97
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C
0.98
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D
89
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Solution

The correct option is A 0.95
(0.99)5=(10.01)5
We know that
(a+b)n=nC0an+nC1an1b1+nC2an2b2++nCn1a1bn1+nCnbn

Hence
(a+b)5=5C0a5+5C1a4b1+5C2a3b2+5C3a2b2+5C4ab4+5C5b5

=a5+5!1!(51)!a4b1+5!2!(52)!a3b2+5!3!(53)!a2b3+5!4!(54)!ab4+b5
Using first three terms,
(0.99)5=10.05+0.001
=1.0010.050
=0.9510
So, approximate value of (0.99)5=0.9510

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