Simon first gets a present of over £50 on his nth birthday. Show that:?
n> 1/log1.1 +1
Simon gets £5 on his first birthday and this
amount increases by 10% each year.
Where does the 1.1 come from? 10% of 5 is 0.5!
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the 1.1 is because if he has 100% this year he will have 100 + 10 or 110% next year.
then the next year he will have 110% or 1.1 times as much again
so his money will be 5 x 1.1
then 5 x 1.1 x 1.1
then 5 x 1.1 x 1.1 x 1.1
so $ = 5 [ (1.1)^n ]