Use the binomial expansion to expand (1.08) for the first three terms. Calculate the approximate revenue using your expansion. Compare your approximation to the exact value calculated using a calculator. Why is the binomial expansion useful for business owners and accountants? Write 2-3 sentences.

The binomial expansion for $(a+b)^n$ is given by:

In this case, we have $(1.08)^5 = (1 + 0.08)^5$. So, $a=1$, $b=0.08$, and $n=5$.

The first term is $\binom{5}{0}(1)^5 (0.08)^0$:

The second term is $\binom{5}{1}(1)^4 (0.08)^1$:

The third term is $\binom{5}{2}(1)^3 (0.08)^2$:

The expansion for the first three terms is:

The binomial expansion of $(1.08)^5$ for the first three terms is $\boxed{1 + 0.40 + 0.064}$.

The revenue formula is given as $500(1.08)^5$. Using the approximation from part (a), $(1.08)^5 \approx 1.464$.

The approximate revenue is $\boxed{\text{GHC } 732}$.

Approximate Revenue = GHC 732
Exact Revenue = GHC 734.66
The difference is $734.66 - 732 = 2.66$.
The approximate revenue (GHC 732) is slightly lower than the exact revenue (GHC 734.66). The difference is $\boxed{\text{GHC } 2.66}$.