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Binomial Theorem:

1n + nC1*1n-1*r + nC2*1n-2*r2+......+nCn-1*1*rn-1 + rn

Or

(1+r)n = 1 + n*r + n(n-1)/2! * r2 + n(n-1)(n-2)/3! * r3 + .......... n(n-1)...(n-k)/k! * rk

if n < 1 as you cannot calculate the combinations that easily. This gives an accurate approximation provided that abs(x) < 1.

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15y ago

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