Solve the problem.
-A company makes a very durable product. It sells 20,000 in the first year, but will have diminishing sales due to the product's durability, so that each year it can expect to sell only seventy-five percent of the quantity it will
Have sold the year before. How many products can the company expect to eventually sell?
A) 80,000 products
B) 35,000 products
C) 26,667 products
D) 40,000 products

Question

Quizplus · Accepted Answer

This is a geometric series problem where the first term is 20,000 and the common ratio is 0.75. The sum of an infinite geometric series is given by S = a / (1 - r), where a is the first term and r is the common ratio. Plugging in the values, S = 20,000 / (1 - 0.75) = 20,000 / 0.25 = 80,000.

Solve the Problem. -A Company Makes a Very Durable Product. It Sells 20,000