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To: Murti Gajjala who wrote (27)12/29/1996 9:28:00 AM
From: shean bond   of 82
 
Murti,

I read your message a couple of days ago but haven't had time to reply until now, what with Christmas festivities and summer holidays etc.

You have certainly answered the question ...
... an infinite sum of a geometric progression -
(I have to admit to dusting off on old maths book after reading your message).

This leads me to wonder about the validity of Hagstrom's model. If the the basis of the capitalisation term is the sum of an infinite series, what error is introduced when the sum is finite - or more specifically, when the sum is a series of 10 to 20 terms (ie 10 to 20 years)?

I intend to check this out on a spreadsheet using one of Hagstrom's examples as a base case. I'll post my findings here.

Shean
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