Answer:
total profit = $428,517,224 (nearest whole number)
Step-by-step explanation:
Use geometric sum formula:
[tex]S_n=\dfrac{a(1-r^n)}{1-r}[/tex]
where [tex]a[/tex] is the initial value and [tex]r[/tex] is the common ratio
We have been told that the initial value is 242500, so [tex]a=242500[/tex].
If the company's profit increases by 22% per year, this means each year's profit is 122% of the previous year's profit. 122% = 122/100 = 1.22
Therefore, [tex]r = 1.22[/tex]
We need to calculate the total profit earned over 30 years, so [tex]n = 30[/tex]
Inputting these values into the formula:
[tex]\implies S_{30}=\dfrac{242500(1-1.22^{30})}{1-1.22}=\$428,517,224 \ \textsf{(nearest whole number)}[/tex]
