Asmall business owner made $30,000 the first year he owned his store and made an additional 2 over the previous year in each subsequent year. find how much he made during his fourth year of business. find his total earnings during the first four years. (round to the nearest cent, if necessary.)

When an additional 2% is added to the subsequent year, you must multiply the earnings of the previous year with 1.2, because that means 100% plus and additional 2% of the base price. The solution is as follows:

First year: $30,000
Second year: $30,000(1.2) = $36,000
Third year: $36,000(1.2) = $43,200
Fourth year: $43,200(1.2) = $51,840

In his fourth year, he made $51,840. His total earnings is the sum of all the individual earnings per year, which is equal to $161,040.

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