Growth rate: Cleargen, a detergent manufacturer, has announced this year's profit as $832,500. It expects its net earnings to grow at a rate of 15 percent per year for the next two years, before dropping to 12 percent for each of the following two years. What is the company's profit after four years? (Round to the nearest dollar.)

Question

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The profit after four years is calculated by applying the growth rates successively: $832,500 * 1.15 * 1.15 * 1.12 * 1.12 = $1,381,071.

Growth Rate: Cleargen, a Detergent Manufacturer, Has Announced This Year's