What is the answer for 322km to hour
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The initial deposit is $9,000. The bank kept 9% of this amount in reserve and landed out the rest. So, the bank kept $810 as reserve and loaned out as $8190. The process repeated itself and this time the bank kept $737.10 as reserve and loaned out as $7452.90. This process will repeat itself indefinitely.
So, we will have a geometric series with r< 1 and with infinite terms.
Also, the total money creation is initial deposit times money multiplier.
Here Money multiplier =
Hence, the money creation =
So, the total money that resulted from the initial investment is $100,000.