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. $15,149.72
b. $16,058.71
c. $31,120.46
d. $32,987.69

Answer 1

Answer:

A! Took the test on edge

Step-by-step explanation:

Answer 2

Answer:

option A

Step-by-step explanation:

given,

Korey expects to average $1,000 of profit each month

first year profit from the comic book store = $1000 × 12

                                                                     = $12,000

now for next four year profit will increase by 6%

Second year profit:  $12,000 × 1.06

Third year profit:      $12,000 × 1.06²

Fourth year profit:    $12,000 × 1.06³

Fifth year profit:        $12,000 × 1.06⁴

                                 =$15,149.72

Profit of Korey expected after fifth year is equal to $15,149.72.

Hence the correct answer is option A