A new firm loses $3600 in its first month, but its profit increases by $700 in each succeeding month. What is its profit in the 8th month?
A) $9200
B) $1300
C) $2000
D) $8500

Question

Quizplus · Accepted Answer

The firm's profit increases by $700 each month. In the 8th month, the profit would be calculated as follows: Initial loss = -$3600, so for the first month, it's -$3600. From the second month onwards, it starts to make a profit increase of $700 per month. So, by the 8th month, the calculation is -$3600 + 7($700) = -$3600 + $4900 = $1300.

A New Firm Loses $3600 in Its First Month, but Its