Question

Korey is planning to open a comic book store. In his first year of operation, Korey expects to average $1,000 of profit each month. He then expects profits to increase by 6% each year for the next 4 years. How much does Korey expect to make in profits in his fifth year of operation? A = P (1 + r) superscript t

Answer 1

Korey expects to make in profits in his fifth year of operation : 15149.73 dollars

Explanation:

the first year : 1000 *12=12000

for the nest four years :12000(1+0.06)^4 = 15149.73

Korey expects to make in profits in his fifth year of operation : 15149.73