A new computer software company earns a profit of $245 000 in its first year. The company expects the profit to increase by 15% each year for each subsequent year.

Question

(a) What profit can the company expect to earn in its seventh year?
(b) Find the total profit the company will earn in its first ten years.

Answer 1

in first year:
245,000
in second year
245,000 (1.15)^1
in third year
245,000 (1.15)^2

in nth year
245,000 (1.15)^(n-1)

NOW - go to web site Math is fun and look upo geometric sequence with
a = 245,000
and
r = 1.15

it also shows you how to sum the first ten terms :)
http://www.mathsisfun.com/algebra/sequences-sums-geometric.html

Answer 2

Thanks Damon!