Question

A new company opens and finds the profits from their first year in business is $24,000. They project the company's profits to increase by 1.7% each year. What is their expected profit 10 years from now?

Answer 1

Answer:

$4406.7 is the profit.

explanation:

compound interest formula: $\sf \large\boxed{\sf P(1+\frac{r}{100})^n }$

using this formula:

$\rightarrow \ \sf \sf 24000(1+\dfrac{1.7}{100})^{10} }$

$\rightarrow \sf \ \sf 28406.7$

profit: $28406.7  - $24,000 = $4406.7