Question

an Individual starts a business and loses $150k in the first yr, $120k in the second yr and $90k in the third yr. If the improvement continues at the same rate. find the profit or loss after 20 yrs. after how many yrs will his loses be juss balanced by his gains

Answer 1

well he is gaining another 30k each year so just do the math

Answer 2

Not adding up. I'm geting he breaks even in 6 yrs answ is 11

Answer 3

ok they want 2 answers you have 1 at 11years, now add the other 9 years on and thats the profit

Answer 4

sorry didnt see that you replied

Answer 5

how are they gettin 11 is my question.

Answer 6

after 6 years he is even but all of his past years have accumulated, so you need to earn all of it back

Answer 7

So after 6 yrs he has lost 450k

Answer 8

and to gain it back he'll need 450/30, 15yrs?

Answer 9

no it would be 11 years

Answer 10

i get it now. he stops making loses in the sixth yr then between yr 6 and ten he recovers what he had lost in yrs 1 to 5 thus inyr 11 he makes his first profit

Answer 11

no he breaks even in yr 11

Answer 12

correct he breaks even in year 11 and the rest is profit

Answer 13

from yr 12 to 20 he gains 30k each yr 30*9 to give 270k.

Answer 14

thx

Answer 15

do you understand how this works?

Answer 16

Thx, sure do now

Answer 17

ok glad i could help

Answer 18

@Moyo30 i think you might have screwed up on that last part

Answer 19

What do u mean? He continues to make 30k a yr right?

Answer 20

no the next year he will make 180k, then 210k... so on and so on