A store’s profit is $800 in the first month. The profit grows three percent every month. What is the store’s total profit after 10 months?
To find the total profit after 10 months, we can use the formula for compound interest, which is:
A = P(1 + r)^n
Where:
A = total profit after 10 months
P = initial profit = $800
r = growth rate = 3% or 0.03
n = number of months = 10
Plugging in the values, we get:
A = $800(1 + 0.03)^10
A = $800(1.03)^10
A = $800(1.3443)
A = $1074.40
Therefore, the store’s total profit after 10 months is $1074.40.