Question

A company's yearly profit during its first 5 years of operation can be modeled by the equation

P=225(1.13) + 400, where x is the number of years since the company started and P is the
profit in dollars. Draw a graph to represent this situation. If this pattern continues, what would
the company's profit be in year 7?

Answer 1

Explanation:

To graph the company's profit over the first 5 years, we can use the given equation:

P = 225(1.13) + 400

Let's calculate the profit for each year and plot the points on a graph.

Year 1 (x = 1):

P = 225(1.13) + 400 = 694.25

Year 2 (x = 2):

P = 225(1.13)^2 + 400 = 821.69

Year 3 (x = 3):

P = 225(1.13)^3 + 400 = 965.21

Year 4 (x = 4):

P = 225(1.13)^4 + 400 = 1,126.96

Year 5 (x = 5):

P = 225(1.13)^5 + 400 = 1,308.35

Now, let's plot these points on a graph, with the x-axis representing the number of years and the y-axis representing the profit in dollars.

The points are:

(1, 694.25)

(2, 821.69)

(3, 965.21)

(4, 1,126.96)

(5, 1,308.35)

Once we have plotted these points, we can draw a line connecting them to represent the trend in the company's profit over the first 5 years.

To find the profit in year 7 (x = 7), we can substitute x = 7 into the equation:

P = 225(1.13)^7 + 400

Calculating this value will give us the company's predicted profit in year 7.

I hope this explanation helps. If you have any further questions, feel free to ask!