- In this question you should show all stages of your working.
\section*{Solutions relying entirely on calculator technology are not acceptable.}
A company made a profit of \(\pounds 20000\) in its first year of trading, Year 1
A model for future trading predicts that the yearly profit will increase by \(8 \%\) each year, so that the yearly profits will form a geometric sequence.
According to the model,
- show that the profit for Year 3 will be \(\pounds 23328\)
- find the first year when the yearly profit will exceed £65000
- find the total profit for the first 20 years of trading, giving your answer to the nearest £1000