how do i start this problem?

[missdydon]

assume that you receive a gift of $10000 and spend 95% of it in a month. assume further that the next month 95% of what you spend is again redistributed into the economy. if this pattern continues each month

a) find how much money in each month for months 1-10

b) the economic impact in month N is the sum of the amounts redistributed into the economy for months 1 to N. write as summation

c) evaluate the economic impact after 1 year.

d) does the infinite sum converge? if so, to what value?

 

[Deleted member 4993]

assume that you receive a gift of $10000 and spend 95% of it in a month. assume further that the next month 95% of what you spend is again redistributed into the economy. if this pattern continues each month

a) find how much money in each month for months 1-10

b) the economic impact in month N is the sum of the amounts redistributed into the economy for months 1 to N. write as summation

c) evaluate the economic impact after 1 year.

d) does the infinite sum converge? if so, to what value?

Hint:

What is 95% of 10000?

How much money is left after first month of your spending spree?

How much is 95% of that?

Please read the post titled "Read before Posting".

We can help - we only help after you have shown your work - or ask a specific question (not a statement like "Don't know any of these")

Please share your work with us indicating exactly where you are stuck - so that we may know where to begin to help you.

 

[Bob Brown MSEE]

Hi missdydon

You have made a good start.
You Listed the problem as you got it.
You listed only one problem. (several parts is ok)

I see that this is your first post, read Guidelines (click), if you have not already.

Next, pick one part (Start with a) and tell us what you have tried and what confuses you.
(we do not work the problem for you, we save you time by keeping you on track.

Look forward to your reply

 

[HallsofIvy]

assume that you receive a gift of $10000 and spend 95% of it in a month. assume further that the next month 95% of what you spend is again redistributed into the economy. if this pattern continues each month

Okay, what is 95% of $1000? That is how much you spend. Now, you are to assume that 95% of that is "redistributed". So what is 95% of that number?

a) find how much money in each month for months 1-10

Now do that for 10 months.

b) the economic impact in month N is the sum of the amounts redistributed into the economy for months 1 to N. write as summation

Try to find a formula that will give the numbers you just got for n= 1 to 10. Can you do that?

c) evaluate the economic impact after 1 year.

This is actually easier than (b). Do what you did in a, for n= 1 to 10, continuing for n= 11 and n= 12.

d) does the infinite sum converge? if so, to what value?[/QUOTE]