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This is actually a Lipschitz function, so thought I should show that it's a Cauchy sequence. I assumed that $f(x_n)=x_{n+1}$. Putting $x=x_{n-1}$ and $y=x_{n-2}$, we get

$$|f(x_{n-1})-f(x_{n-2})| \le \frac 12 |x_{n-1} - x_{n-2}|$$

This gives us,

$$|x_n - x_{n-1}| \le \frac 12 |x_{n-1} - x_{n-2}|$$

Which ultimately gives that

$$|x_n - x_{n-1}| \le \frac{1}{2^{n-2}} |x_2-x_1|$$

Now, I don't know how to proceed from this.....

Gary
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