Question

In a company's first year in operation, it made an annual profit of $322,000. The

profit of the company increased at a constant 21% per year each year. How much
total profit would the company make over the course of its first 26 years of operation,
to the nearest whole number?

Answer 1

$216,265,829

Explanation:

To find the sum of a geometric series we use the following equation

`a*(1-r^n)/(1-r)`

we have

`322000*(1-1.21^(26))/(1-1.21)\\\\322000*671.633=216265829`

Answer 2

Since the annual profit for the FIRST YEAR is $322,000 and it increases 21% every year for 26 years, you do so to find the answer to the question.

Explanation:

21% per year

26 years

21 x 26 = 546

Now you have to find 546% of 322,000 and add that to 322,000.

546% of 322,000 is 1,758,120.

hope this helped!