Reference no: EM131564510

Question: Solve the given problems by use of the sum of an infinite geometric series.

If a major league baseball team can make it to the World Series, it can be a great financial boost to the economy of their city. Let us assume, if their team plays in the World Series, that tourists will spend $20,000,000 for hotels, restaurants, local transporation, tickets for the Series and city attractions, and so forth. We now assume that 75% of this money will be spent in a second round of spending in the city by those who received it. A third round, fourth round, fifth round, and so on of 75% spending will follow. Now assuming this continues indefinitely, what is the total amount of this spending, which in effect is added to the economy of the city because of the World Series? This problem illustrates one of the major reasons a city wants to host major events that attract many tourists.