a company projects a loss of $100,000 in its first year of trading, but each year it will make $15,000 more than the previous year. In which year does it first expecet to make a profit?

Answer 1

Suppose it takes n years.

1st year - 100000 profit

2nd year - 85000 profit

3rd year - 70000 profit

4th year - 55000 profit

5th year - 40000 profit

6th year - 25000 profit

7th year - 15000 profit

8th year 0 surplus

9th year 15000 surplus

10th year 30000 surplus

So you have to keep going until the total of the numbers here is zero. Then the company will make a profit in the next year.