To calculate the total profit the company would make over the course of its first 24 years of operation, we need to use the formula for calculating compound interest:
A = P(1 + r)^n
Where:
A = Total profit after n years
P = Initial profit = $204,000
r = Annual increase rate = 18% = 0.18
n = Number of years
First, let's calculate the profit after 24 years:
A = $204,000(1 + 0.18)^24
A = $204,000(1.18)^24
A = $204,000(64.350366)
A = $13,123,549.784
Therefore, the total profit the company would make over the course of its first 24 years of operation is approximately $13,123,550.
In a company's first year in operation, it made an annual profit of dollar sign, 204, comma, 000$204,000. The profit of the company increased at a constant 18% per year each year. How much total profit would the company make over the course of its first 24 years of operation, to the nearest whole number?
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