This problem stumped me a bit. Finding the answer was straight forward but I feel like I'm missing some formula that isn't jumping at me.
The problem: A company makes $1000 profit the first month. They intend to make their profit grow by 10% every month (paraphrasing this part) for the next two years. What is the profit they will make for the first year?
I knew immediately this is some kind of exponential growth function, but didn't have the formula jump out at me.
1000 + (1000 * 1.1) + (1000 * 1.1 * 1.1) + ....
= 1000 + (1000 * 1.1) + (1000 * 1.1^2) + ....
so for the nth month, the profit is: 1000(1 + 1.1^n)
But what's the formula for the entire summation? Is there one? Or do I just add up all of the 12 individual months?