SOLUTION: a hire tool firm finds that their net return from hiring tools is decreasing by 10percent per annum .if their net gain on certain tool this year is Tanzanian shillings 400,000/= fi
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Question 1151907: a hire tool firm finds that their net return from hiring tools is decreasing by 10percent per annum .if their net gain on certain tool this year is Tanzanian shillings 400,000/= find the possible total of all future profits from this tool (assuming the tool lasts forever) Answer by ikleyn(52803) (Show Source):
The possible total of all future profits from this tool (assuming the tool lasts forever) is the sum of this infinite geometric progression
400000*0.9 + 400000*0.9^2 + 400000*0.9^3 + . . . = 400000*(0.9 + 0.9^2 + 0.9^3 + . . . ) = = =
= 400000*9 = 3600000 dollars. ANSWER
