Chapter 10: Problem 70
GENERAL: Coupons A \(45 \phi\) candy bar comes with a coupon worth \(10 \%\) toward the next candy bar (which includes a coupon for \(10 \%\) of the next, and so on). Therefore, the "real" value of a single \(45 \phi\) candy bar is $$ 45+45(0.10)+45(0.10)^{2}+45(0.10)^{3}+\cdots $$ Find this value.
Short Answer
Step by step solution
Identify the series
Formula for the sum of an infinite geometric series
Substitute values into the formula
Calculate the denominator
Compute the sum
Conclusion
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Key Concepts
These are the key concepts you need to understand to accurately answer the question.
Sum of Geometric Series
In the original exercise, our series starts at 45 (the price of a candy bar) and uses a common ratio of 0.10. This results in the series:
\[ 45 + 45(0.10) + 45(0.10)^2 + 45(0.10)^3 + \cdots \]
The beauty of an infinite geometric series with a common ratio between -1 and 1 is that it converges to a sum, which means despite having an infinite number of terms, the total value remains finite.
Common Ratio
In the example given, each candy bar's discount value decreases by a factor of 0.10, which is our common ratio. This means:
- First term: 45
- Second term: 45 \( \times \) 0.10
- Third term: 45 \( \times \) (0.10)^2
- And so on...
Convergence of Series
For the original exercise, the common ratio is 0.10, and because it is less than 1 in absolute value, the series converges. This tells us that all those discounts (from many candy bars) add up to a finite number, illustrating the idea that small repeating discounts can be collectively quantified.
Understanding convergence is vital. It not only helps assess the potential sum of an infinite series, but it also helps predict whether the total sum will be manageable or excessively large.
Series Formula
\[ S = \frac{a}{1 - r} \]
where \(a\) is the first term and \(r\) is the common ratio. This formula works efficiently because it directly accounts for the number of terms stretching to infinity.
In the context of our exercise, substituting the values gives:
- \(a = 45\)
- \(r = 0.10\)
- Sum \( S = \frac{45}{1 - 0.10} = \frac{45}{0.90} = 50\)