Question

Increasing at a constant rate,a company's profits y have gone form $535 milion in 1985 to $570 million in 1990. Find the expected level of profit for 1995 if the trend continues. 2)

Answer 1

total profit=$607.278

Explanation:

company's profit in 1985= $535 million

company's profit in 1990=$570 million

growth rate =
`(570-535)/(535)* 100`

=
`(35)/(535) * 100`

= 6.54 %

profit in year 1995 will be =
`(6.54)/(100)* 570 =\ \$37.278`

hence total profit= $570+$37.278

= $607.278