Question

The profit P after the first month of operation for a new departmental store is $10,605. The profit of the departmental store after x months can be determined by P = 10500(1.01)x. What will the profit of the store be after 6 months?

Answer 1

p = 11145.96

Explanation:

If x is an exponent and 1.01 its base then we are looking at a case of compound increments and the profit can be said to be earning compound interest at a rate of 1%. The profit of the store after 6 months is found by simply substituting x with 6 in the equation of p; p = 10500(1.01)^6