Given that,
The equation is,
[tex]P_n=P_{n-1}+12000[/tex]withg initial sales,
[tex]P_0=27000[/tex]a) To calculate P1 and P2
Put n=1 in the given equation
[tex]P_1=P_0+12000[/tex]Substitute the values, we get,
[tex]=27000+12000=39000[/tex]d)To find the time (n) store's sales exceed $97,000
Let Pn=97000
we get,
[tex]97000=27000+12000n[/tex][tex]12000n=97000-27000[/tex][tex]n=5.8[/tex]Answer is: 5.8 years