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 112 times the previous month's profit. What will the company's profit be in the fifth month?

Answer 1

First Month

$100

Second Month

$100 (1.5) = $150

Third Month

$150 (1.5) = $225

Fourth Month

$225 (1.5) = $337.5

Fifth Month

$337.5 (1.5) = $506.25

The company's profit be in the fifth month would be $506.25