Solve the problem.
-A small business owner made $60,000 the first year he owned his store and made an additional 7% over the previous year in each subsequent year. Find how much he made during his fourth year of business. Find his
Total earnings during the first four years. (Round to the nearest cent, if necessary.)
A) $294,780.00; $630,180.00
B) $501,126.00; $1,131,306.00
C) $20.58; $64,514.58
D) $73,502.58; $266,396.58

Question

Quizplus · Accepted Answer

The earnings increase by 7% each year. For the fourth year, the calculation is $60,000 * (1 + 0.07)^3. The total earnings over four years sum the annual earnings, considering the 7% growth each year.

Solve the Problem. -A Small Business Owner Made $60,000 the First Year He