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Answer:
$ 12,222,222.22
Step-by-step explanation:
Let P be the initial amount distributed,
Since, the spending in first instance = 55% of P
= 0.55(P)
In second instance = 55% of (0.55(P)) = 0.55² P
In third instance = 55% of (0.55² P) = 0.55³ P,
............................., so on.....
Thus, total increase in spending = 0.55P + 0.55² P + 0.55³P.....
We know that,
0.55P, 0.55²P, 0.55³P,..............
Is a GP with infinite number of terms,
Having first term, a = 0.55P,
Common ratio, r = 0.55,
Hence, the sum of the above series,
Here, P = $ 10000000,
Therefore, total amount increase =
= $ 12,222,222.22