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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?
 Mar 17, 2014

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 #1
avatar+128407 
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I'll get you started, and you can finish.

At the end of the first year, Korey can expect to make 12000*(1.06).

At the end of year 2, that rises to 12000*(1.06)*(1.06) = 12000(*(1.06)^2

So, at the end of N years, Korey can expect profits of 12000*(1.06)^N
 Mar 17, 2014

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