select the correct answer. jessica opened an apparel shop five years ago. in the first year, she made a…

select the correct answer. jessica opened an apparel shop five years ago. in the first year, she made a profit of $3,125. each year after that, her profit was 20 percent more than in the previous year. what is the total profit jessica earned in 5 years? a. $32,400 b. $23,255 c. $7,776 d. $6,480
Answer
Answer:
A. $32,400
Explanation:
Step1: Identify the sequence type
This is a geometric - sequence problem. The first - term $a_1 = 3125$ and the common ratio $r=1 + 0.2=1.2$.
Step2: Recall the sum formula for a geometric sequence
The sum formula for a geometric sequence $S_n=\frac{a_1(1 - r^n)}{1 - r}$ where $n$ is the number of terms, $a_1$ is the first - term, and $r$ is the common ratio.
Step3: Substitute the values into the formula
Here, $a_1 = 3125$, $r = 1.2$, and $n = 5$. So $S_5=\frac{3125(1-(1.2)^5)}{1 - 1.2}$.
Step4: Calculate $(1.2)^5$
$(1.2)^5=1.2\times1.2\times1.2\times1.2\times1.2 = 2.48832$.
Step5: Calculate the numerator
$1-(1.2)^5=1 - 2.48832=-1.48832$, and $3125\times(-1.48832)=-4651$.
Step6: Calculate the denominator
$1 - 1.2=-0.2$.
Step7: Calculate the sum
$S_5=\frac{-4651}{-0.2}=32400$.