(a) {aβ, aβr, aβrΒ², β¦ aβrβΏβ»ΒΉ, β¦}
(b) $59 398
step-by-step explanation:
(a) the annual sequence of profits
aβ = aβrβΏβ»ΒΉ
the model for the sequence of profits is {aβ, aβr, aβrΒ², β¦ aβrβΏβ»ΒΉ, β¦} .
(b) profit after 15 yr
aβ = $ 30 000
r = 1.05
aββ
= 30 000 Γ 1.05ΒΉβ΄
aββ
= 30 000 Γ 1.979 93
aββ
= $59 398
the profit in year 15 will be $59 398.