Is there a method I can use to get an answer without having to resort to using Wolfram Alpha to calculate $9^{89}$ and taking the last three digits?
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Using $9^{89}=(10-1)^{89}$
Now using Binomial Theorem $$(10-1)^{89}$$ $$=10^{89}-\binom{89}{88}10^{88}+\cdots-\binom{89}410^4+\binom{89}310^3-\binom{89}210^2+\binom{89}110-1$$
$$\equiv-\binom{89}210^2+\binom{89}110-1\pmod{10^3}$$
$$\equiv-\frac{89\cdot88\cdot100}2+89\cdot10-1\pmod{10^3}$$
$$\equiv-(100-11)(100-12)50+889\pmod{10^3}$$
$$\equiv -50\{100(100-11-12)+11\cdot12\}+889\pmod{10^3}$$
$$\equiv -50\cdot11\cdot12+889\pmod{10^3}\text{ as }50\cdot100\equiv0\pmod{10^3}$$
$$\equiv889-660\equiv289$$
lab bhattacharjee
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Is there any particular reason why you changed $(10-1)$ to $-(1-10)$? – Mirrana Oct 14 '13 at 18:16
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@agent154, please have a look into the edited version. I changed the sign so that we can start from the lowest power of 10 i.e., $0$ – lab bhattacharjee Oct 15 '13 at 05:02