Question

Natalie is applying for a small business loan for her clay studio business. The loan officer asked Natalie to determine the business's current value and growth for the next few years. Natalie projected a steady growth rate for her clay studio business. She created the table below to display her value determination.

Based on the information from Natalie's table, write an exponential expression in the form a * b^x to determine the projected value of Natalie's business after 10 years.

Answer 1

$53,725.43

Explanation:

X = year

A = Beg. of Year Value

B= slope

Find the common ratio by dividing two close years together, preferably the beginning value and the first year: 31,800/30,000.

Common ratio (or slope) = 1.06

So the expression, substituting 10 for x:

30,000(1.06)^10