Answer:
The total profit the company would make over the course of its first 14 years of operation is approximately $2,562,841.
Explanation:
The profit of the company increased at a constant 20% per year. We can use the formula for the future value of an investment to calculate the profit for each year, where:
FV = PV x (1 + r)^n
FV is the future value of the investment
PV is the present value of the investment
r is the annual interest rate
n is the number of years
Using this formula, we can find the profit for each year:
Year 1: $140,000
Year 2: $168,000
Year 3: $201,600
Year 4: $241,920
Year 5: $290,304
Year 6: $348,364
Year 7: $418,037
Year 8: $501,644
Year 9: $601,972
Year 10: $722,367
Year 11: $866,840
Year 12: $1,040,208
Year 13: $1,248,250
Year 14: $1,497,900
To find the total profit over the course of the first 14 years, we can simply add up the profits for each year:
Total profit = $140,000 + $168,000 + $201,600 + $241,920 + $290,304 + $348,364 + $418,037 + $501,644 + $601,972 + $722,367 + $866,840 + $1,040,208 + $1,248,250 + $1,497,900
Total profit = $2,562,841 (rounded to the nearest whole number)