Question

A company earns a profit of $100 the first month it is in business. Every month after that, the company earns a profit that is 1 1/2 times the previous month's profit. What will the company's profit be in the fifth month? Enter your answer in the box.

Answer 1

506.25

Explanation:

Month 1: $100

Month 2: 100 times 1.5 = 150

Month 3: 150 times 1.5 = 225

Month 4: 225 times 1.5 = 337.50

Month 5: 337.50 times 1.5 = 506.25