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 a. $15,149. 72 b. $16,058. 71 c. $31,120. 46 d. $32,987. 69.

Answer 1

Profit is considered as the income(money made without factoring money lost) less outcome (expense) and you have your profit side note- profit can be negative. Profit is a financial gain, especially the difference between the amount earned and the amount spent in buying, operating, or producing something.

Profits in the fifth year

Given Information:

• Average Profit=1,000
• Increasing rate=6%
• Number of years=4

First year profit: $1000*12 = $12,000

Second year profit: $12,000 * 1.06

Third year profit: $12,000 * 1.06^2

Fourth year profit: $12,000 * 1.06^3

Fifth year profit: $12,000 * 1.06^4 =$15,149.72

Hence, Korey expects to make in profits in his fifth year of operation:-$15149.73

Learn more about Korey, refer to the link:

brainly.com/question/9459027