Intermediate Microeconomics and Its Application 12th Edition by Walter Nicholson,Christopher Snyder

تمرين 11

The term (1 + i)3 can be expanded to be 1 + 3i + 3i2 + i3. Carefully explain why each of these terms is required in order to reflect the complete effects of compounding. You may have to do some factoring to make your explanation clear.