Suppose the Annual Spending by Tourists in a Resort City

question 4

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 . Find the sum of this series.

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

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