Suppose the annual spending by tourists in a resort city is $100 million. Approximately 75% of that revenue is again spent in the resort city, and of that amount approximately 75% is again spent in the same city, and so on. Summing all of this spending indefinitely, leads to the geometric series . Find the sum of this series.
A) $800 million
B) $401 million
C) $200 million
D) $801 million
E) $400 million

Question

Suppose the annual spending by tourists in a resort city is $100 million. Approximately 75% of that revenue is again spent in the resort city, and of that amount approximately 75% is again spent in the same city, and so on. Summing all of this spending indefinitely, leads to the geometric series  . Find the sum of this series.
A) $800 million 
B) $401 million 
C) $200 million 
D) $801 million 
E) $400 million

Quizplus · Accepted Answer

The Answer of Suppose the annual spending by tourists in a resort city is $100 million. Approximately 75% of that revenue is again spent in the resort city, and of that amount approximately 75% is again spent in the same city, and so on. Summing all of this spending indefinitely, leads to the geometric series  . Find the sum of this series.
A) $800 million 
B) $401 million 
C) $200 million 
D) $801 million 
E) $400 million

Suppose the Annual Spending by Tourists in a Resort City