he store owner sets a goal of increasing profits by $5,000 each year for the next 4 years. Assuming that this goal in met, find the total profit during the first 5 years of business.

Question

A small hardware store makes a profit of $20,000 during its first year. The store owner sets a goal of increasing profits by $5,000 each year for the next 4 years. Assuming that this goal in met, find the total profit during the first 5 years of business.

profit = $ ___________

Answer 1

So here just right out how much money they will make for each year in units of 20K and 5K (K means thousands). We know each year he will make 5K more than the last so we can write it out as so

Year 1 - 20K

Year 2 - 20K + 5K

Year 3 - 20K + 5K + 5K

Year 4 - 20K + 5K + 5K + 5k

Year 5 - 20K + 5K + 5K + 5k + 5K

Now count out the number of 20K's and 5K's. We see there's 5 20K's and 10 5K's so:

5 * 20K = 100K

10 * 5K = 50K

100K + 50K = 150K

So the hardware store will make 150 Thousand dollars over 5 years