Amounts converge to a limiting value - find an equation

[Monkeyseat]

Question:

Working:

a)

I did:

650 = 800 + q
530 = 650 + q

So:

120 = 150p
p = 0.8

When p = 0.8 is substituted in, the value for q is 10.

So p = 0.8 & q = 10.

b)

Don't really know what to do here or understand what it's asking.

I thought it might be something to do with:

Sum to infinity = a/(1-r)

But I don't know r.

Anyway if you could help with (b), that would be much appreciated.

Thanks.

 

[royhaas]

If there is a limiting value, it will satisfy \(\displaystyle V = pV+q\).

 

[Monkeyseat]

If there is a limiting value, it will satisfy \(\displaystyle V = pV+q\).

I've either not covered this area or I've missed something. How did you get that formula?

Thanks.