Question

Leroy owns a business earning $49,300 in profits, these profits are appreciating at about 2.9% each year. What are leroys profits after nine years ?

Answer 1

$62,167.3

Explanation:

Profit after nine years is the amount.

Amount = Principal + Interest

Given

Earning profit = Principal = $49,300

Rate = 2.9%

Time = 9 years

Interest = Principal * Rate * Time/100

Interest = $49,300*2.9*9/100

Interest = 1,286,730/100

Interest = $12,867.30

Amount = $49,300+$12,867.30

Amount = $62,167.3

Hence leroys profits after nine years is $62,167.3