In the 5th year of operation,a profit of a company was 3 times the profit it earned the 1st year of operation.If the profit was $114,000 the 5th year of operation,what’s the profit in the first year?

Answer 1

The first step in solving this problem it to read through it section by section and set up the equation.

What we are trying to find is the profit in the first year so this will be "x"

And we know that 5th year = $114,000

5th year they earned 3 times the profit as the 1st year

So, 3x=114,000

To get x we divide 114,000/3

Which gives us x=38,000

So in the first year they earned $38,000