Question

A small business owner made $40,000 the first year he owned his store and made an additional 7% over

the previous year in each subsequent year. Find how much he made during his fourth year of business.
Find his total earnings during the first four years.

Answer 1

1st year= 40,000
2nd year= 40,000 + 2,800=42,800 (2,996)
3rd year= 42,800 + 2,996=45, 796 (3205.72)
4th year= 45,796 + 3205.72=49001.72

40,000 + 42,800 + 45,796 + 49,001.72= 177,597.73

I think this is what they are asking for??