Question

In 1990, the profit of the Gamma company was $10943200. Each year after 1990profits fell by $32,966 on average Construct a linear model for this scenario and use it to solve for the profits in the year 2020. Round your answer to a whole dollar

Answer 1

The profit for the Gamma company in the year 2020 would be approximately $9,954,220, rounded to the nearest whole dollar.

Step-by-step explanation:

To construct a linear model for the Gamma company profits, we first need to establish an equation.

Since the profit is decreasing linearly by $32,966 each year, the slope of our equation will be -32,966.

If we let P represent the profit and t the number of years since 1990, the equation would be:

P = 10,943,200 - 32,966t

For the year 2020, t would be 2020 - 1990 = 30.

Plugging this into the equation:

P = 10,943,200 - 32,966(30)

P = 10,943,200 - 988,980

P = 9,954,220

To construct a linear model for the Gamma company's profits, the equation P = 10,943,200 - 32,966t is used.

For the year 2020, the profit is calculated as $9,954,220 by substituting t with 30 (2020-1990).