Question

Using this equation, what would the company's approximate annual income be in the year 2009?

Answer 1

In order to determine the annual income for the year 2009, replace x by 8 (because number of years is counted form 2001, from x=0) into the given equation and simplify, as follow:

`y=60,000(1.2)^8\approx258,000`

Hence, for year 2009 the annual income could be approximately $258,000