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2 answers:
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1) Iteration means a repetition of a rule.
a)
Considering that we have the following data:
Rate of increase: 5% per year
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2) Then we can write out the following:
Plugging into n, the number of years we'll have:
Profits: $30,000 1st year
P: $31.500 2nd year
$33075 3rd year
(...) (...)
b) Since we want to know the predicted profit 15 years from the first year, then we can plug for that:
Note that we have plugged into n, n=15 years. Since the first year was $30,000 the profits.