Let's calculate the expenses for the company in 2020.
In 2018, the company had total expenses of $100,000.
The company expects expenses to grow by 5% each year for the next two years.
To find the expenses in 2020, we can calculate the growth for each year.
In 2019, the expenses would be $100,000 + 5% of $100,000.
Then, in 2020, the expenses would be the expenses in 2019 + 5% of the expenses in 2019.
Let's do the calculations:
2019 expenses = $100,000 + (5/100) * $100,000
2020 expenses = 2019 expenses + (5/100) * 2019 expenses
Calculating the values:
2019 expenses = $100,000 + $5,000 = $105,000
2020 expenses = $105,000 + $5,250 = $110,250
So, the expenses for the company in 2020 would be $110,250.
