Question

Automobile sales in a country were 20.6 million thisâ year, a 4.9â% increase over last year. Find the number of auto sales in the country last year.?

number â(Round to the nearestâ tenth.)?

Answer 1

Answer: 19.6 million

Explanation:

The exponential growth function is given by :-

`A=A_0(1+r)^x`, where A is the initial amount , r is rate of interest and x is time period.

Given : The automobile sales in a country this year : A= 20.6 million

The rate of increase : r = 4.9 %=0.049

For last year , we take x = 1 , then the required exponential equation will be :-

`20.6=A_0(1+0.049)^1\\\\\Rightarrow\ A_0=(20.6)/(1.049)=19.63775\approx19.6`

Hence, the number of auto sales in the country last year = 19.6 million.