In a company's first year in operation, it made an annual profit of $277,000. The
profit of the company increased at a constant 18% per year each year. How much
total profit would the company make over the course of its first 5 years of operation,
to the nearest whole number?

"Compound interest is the addition of interest to the principal sum of a loan or deposit, or in other words, interest on principal plus interest."

Given, the annual profit of the company at first year = P =$277,000.

The rate of increase of profit = r% = 18% =0.18.

Total duration = n = 5.

Therefore, after first 5 years of operation, total profit the company would make = P[(1 + r)/100]ⁿ

= $277,000(1 + 0.18)⁵

=$633,708.9

≈$633,709

After 5 years , the total profit would have $633,709.

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In a company's first year in operation, it made an annual profit of $277,000. The profit of the company increased at a constant 18% per year each year. How much total profit would the company make over the course of its first 5 years of operation, to the nearest whole number?

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In a company's first year in operation, it made an annual profit of $277,000. The
profit of the company increased at a constant 18% per year each year. How much
total profit would the company make over the course of its first 5 years of operation,
to the nearest whole number?