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. $15,149.72
b. $16,058.71
c. $31,120.46
d. $32,987.69

Question

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wagonbelleville wagonbelleville · Answer 1 · 2019-10-16T12:29:22+02:00

Answer:

option A

Step-by-step explanation:

given,

Korey expects to average $1,000 of profit each month

first year profit from the comic book store = $1000 × 12

= $12,000

now for next four year profit will increase by 6%

Second year profit: $12,000 × 1.06

Third year profit: $12,000 × 1.06²

Fourth year profit: $12,000 × 1.06³

Fifth year profit: $12,000 × 1.06⁴

=$15,149.72

Profit of Korey expected after fifth year is equal to $15,149.72.

Hence the correct answer is option A

voltairejohn27 voltairejohn27 · Answer 2 · 2020-07-29T16:29:01+02:00

Answer:

A! Took the test on edge

Step-by-step explanation:

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