mrzSaragholaliashl
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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?

Verified Answer :

Edufirst

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

lhmarianateixeira

In this exercise we have to use the knowledge of finance to calculate the  profits that Korey expect to make is $15,149.72.

So organizing the information given in the statement we find that:

  • average $1,000 of profit
  • 6% each year for the next 4 years

Doing these calculations we find that:

\(1000*12 = $12,000\\12,000 * 1.06^1\\12,000 * 1.06^2\\12,000 * 1.06^3\\12,000 * 1.06^4 =$15,149.72\)

See more about fiances at brainly.com/question/10024737

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