Question

In the year 2005, a company made $6.6 million in profit. For each consecutive year after that, their profit increased by 9%. How much would the company's profit be in the year 2009, to the nearest tenth of a million dollars?

Answer 1

9.3 million

Explanation:

The growth rate of 9% per year corresponds to a growth factor of 1.09, which goes into the exponential equation ...

profit(t) = 6.6×1.09^t . . . . . for t in years after 2005

2009 is 4 years after 2005, so the profit that year is modeled as ...

profit(4) = 6.6×1.09^4 ≈ 9.3 . . . . million dollars