The Shrinking Rainy Day Fund. On October 5, 2015 The Boston Globe published a story headlined "state's rainy day fund has dwindled over past decade" that said (in part): In the summer of 2007, before the massive recession began, the rainy day fund had $2.3 billion--a cushion of about 7.8 percent of total state spending, according to the taxpayers' foundation. This summer, the rainy day balance stood at $1.1 billion--about 2.7 percent of total state spending, a fraction small enough to raise a red flag for analysis.  Calculate total state spending as of the summer of 2007 and this past summer (2015).

Intermediate Algebra
19th Edition
ISBN:9780998625720
Author:Lynn Marecek
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Section12.3: Geometric Sequences And Series
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The Shrinking Rainy Day Fund.

On October 5, 2015 The Boston Globe published a story headlined "state's rainy day fund has dwindled over past decade" that said (in part):

In the summer of 2007, before the massive recession began, the rainy day fund had $2.3 billion--a cushion of about 7.8 percent of total state spending, according to the taxpayers' foundation. This summer, the rainy day balance stood at $1.1 billion--about 2.7 percent of total state spending, a fraction small enough to raise a red flag for analysis. 

Calculate total state spending as of the summer of 2007 and this past summer (2015).  

 

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