I'm looking into the geometric series and can't understand how the 1 - .01 comes in below:
0.272727... = 0.27 + 0.0027 + 0.000027 + 0.00000027 + ...
= 0.27 + 0.27(.01) + 0.27(.01)^2 + 0.27(.01)^3 + ...
= 0.27 / (1-.01)
= 0.27 / 0.99
= 27/99
= 3/11
This comes from a general formula for how you evaluate a geometric series:
$$\sum_{n=0}^{\infty} ax^n = \frac{a}{1-x},$$
which holds when $|x|<1$.
For a proof of this, you might want to check out this wiki-article: http://en.wikipedia.org/wiki/Geometric_progression#Derivation
This shows you how the "$-1$" pops up for a geometric terms with a finite number of terms, and it will be similar (by going to the limit) for an infinite number of terms. Hope this helps.