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The government, through a subsidy program, distributes $23,000,000. If each person or agency spends 45% of what is received, and 45% of this is spent, and so on, how much total increase in spending results from this goverment action? (Let a1=10,350,000 )

The total increase in spending will be approximately $.
(Round to the nearest dollar as needed)

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Final Answer: The total increase in spending will be approximately 18,818,182.

Steps

Step 1 :The government, through a subsidy program, distributes $23,000,000.

Step 2 :Each person or agency spends 45% of what is received, and 45% of this is spent, and so on.

Step 3 :This forms a geometric series where the first term (a) is 0.4523,000,000 and the common ratio (r) is 0.45.

Step 4 :We can find the total increase in spending by using the formula for the sum of an infinite geometric series, S=a/(1r).

Step 5 :Substituting the values, we get S=10350000.0/(10.45).

Step 6 :Solving this gives us S=18818181.818181816.

Step 7 :Rounding to the nearest dollar, the total increase in spending will be approximately 18,818,182.

Step 8 :Final Answer: The total increase in spending will be approximately 18,818,182.

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