I have come across the following proposition in the book "Complete Normed Algebras" by F. F. Bonsall and J. Duncan in section 16 on page. The section denotes $ A $ as a Banach algebra.
Definition: A multiplicative linear functional on $ A $ is a non-zero linear functional $ \phi $ on $ A $ such that
$$ \phi(xy) = \phi(x) \phi(y) $$
for all $ x, y \in A $.
Proposition 3: Let $ \phi $ be a multiplicative linear functional on $ A $. Then $ \phi $ is continuous and $ \| \phi \| \leq 1 $.
The proof in the text is as follows:
Proof: Suppose that there exists $ x \in A $ with $ \| x \| < 1 $ and $ \phi (x) = 1 $, and let $ y = \sum_{n=1}^{\infty} x^n $. Then $ x + xy = y $, and so
$$ 1 + \phi(y) = \phi(x) + \phi(x)\phi(y) = \phi(x + xy) = \phi(y) $$
which is absurd. $ \blacksquare $
I understand every step of the above proof - the only problem is that I don't see how this proves that $ \phi $ is bounded. Any help would be greatly appreciated.