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
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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