Question

The current revenue for a company is million. The chief officer (CFO) of the company estimates that over the next years, revenues will increase at a continuous rate of between and each year. The function that models the estimated increase is and the function that models the estimated increase is . For each model, represents the number of years from now. Approximate the total difference in revenue under the two models. Answer to the nearest dollar.

Answer 1

The problem asks to approximate the total difference in revenue over a number of years between two models. We can use the given functions to calculate the total revenue for each model and find the difference.

Step-by-step explanation:

The problem states that the current revenue for a company is $1 million. The CFO estimates that over the next n years, revenues will increase at a continuous rate between r1 and r2 each year. The function that models the estimated increase is f1(n) = 1 + r1/100 and the function that models the estimated increase is f2(n) = 1 + r2/100.

To approximate the total difference in revenue under the two models, we need to calculate the total revenue for each model using the given functions and subtract one from the other. For example, if we want to calculate the total revenue after n years under the first model, we can use the formula Total Revenue = Current Revenue * f1(n).

By substituting the given values for r1 and r2 into the formulas and calculating the total revenue for a specific number of years, we can find the difference between the two models.