Question

Company C showed a profit of $ 1.3 million last year. The CEO of the company expects the profit to decrease by 6 % each year over the next five years and the profits will be continuously

Answer 1

Answer and Step-by-step explanation:

If the profit of Company C decreases by 6% each year over the next five years, the profit will decrease by a factor of (1 - 0.06)^5 = 0.74. This means that the profit after five years will be $1.3 million * 0.74 = $962,000.