A bank received an initial deposit of $9,000, kept a percentage of this money in reserve based on a reserve rate of 9%, and loaned out the rest. The amount it loaned out all was eventually deposited back into the bank. If this cycle continued indefinitely, how much money eventually resulted from the initial deposit?

Question

anonymous · Answer

A.	$81,000
 		B.	$17,100
 		C.	$10,000
 		D.	$100,000

amistre64 · Answer

i believe its a geomtric sum

amistre64 · Answer

91% is loaned out

B(.91) + B(.91)(.91) + B(.91)(.91)(.91) + ...

amistre64 · Answer

do you recall the formula for a geometric sum?

anonymous · Answer

yeah