At each step the new rectangle has half the area of the previous one, so the covered area after n rectangles is a partial sum of a geometric series.
Sn=k=1∑nuk=21+41+81+⋯+2n1
Since this is a geometric series with first term a=21 and ratio r=21,
Sn=a1−r1−rn=21⋅1/21−(1/2)n=1−2n1
Because 2n1>0 for every finite n, we have Sn<1. In other words no finite collection of rectangles ever covers the whole square. However,
n→∞limSn=n→∞lim(1−2n1)=1,
so in the limit the infinitely many rectangles “fill” the square.
In a real‐world setting, though, we cannot place infinitely many ever‐smaller rectangles (matter cannot be subdivided below atomic scales, we cannot draw infinitely many shapes in finite time, nor detect arbitrarily tiny regions). Thus the infinite process is a useful mathematical idealisation but has no literal physical counterpart.