Intermediate Algebra for College Students (7th Edition)

Published by Pearson
ISBN 10: 0-13417-894-7
ISBN 13: 978-0-13417-894-3

Chapter 11 - Section 11.3 - Geometric Sequences and Series - Exercise Set - Page 857: 95


The answer is $\$9$ million.

Work Step by Step

Annual payroll $=\$6$ million. $60\%$ of this money $=6\cdot0.60=\$3.6$ million. again they spend $60\%$ $3.6\cdot .60 = \$2.16$ million. The infinitely geometric series is $6,3.6,2.16,...$ and so on. Total of all spending is $3.6+2.16...$ Use sum of the geometric series formula for infinite series. $=\frac{3.6}{1-0.60}$ $=\frac{3.6}{0.40}$ $=9$.
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