Suppose the Annual Spending by Tourists in a Resort City $\sum _ { i = 0 } ^ { \infty } 100 \left( 0.75 ^ { i } \right)$

question 169

Multiple Choice

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 $\sum _ { i = 0 } ^ { \infty } 100 \left( 0.75 ^ { i } \right)$ . Find the sum of this series.

• A) \(\$ 800\) million
• B) \(\$ 401\) million
• C) \(\$ 200\) million
• D) \(\$801\) million
• E) \(\$ 400\) million