Derivation of (S(x, m, N)) (a) Derive the formula for (S(x, m, N)=sum_{n=m}^{N} n x^{n}) in Formula
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Derivation of \(S(x, m, N)\)
(a) Derive the formula for \(S(x, m, N)=\sum_{n=m}^{N} n x^{n}\) in Formula 2.16. Hint: Begin by evaluating \(S(x, m, N)-x S(x, m, N)\).
(b) Alternatively, derive the formula by noting that
\[S(x, m, N)=x \frac{d}{d x}\left(\sum_{n} x^{n}ight)\]
and use the Geometric Series Formula.
(c) Use the above formula and the fact that \(n x^{n} ightarrow 0\) as \(n ightarrow \infty\) when \(|x|<1\) to show
\[\sum_{n \geq 1} n x^{n}=\frac{x}{(1-x)^{2}} \text { when }|x|<1\]
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Related Book For
Mathematical Techniques In Finance An Introduction Wiley Finance
ISBN: 9781119838401
1st Edition
Authors: Amir Sadr
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