Question

The plastic egg revenue that a small company receives increases by 3.5% per year. In 2000, the company received $250,000 in revenue. Determine the revenue in 2008.

Answer 1

The revenue in 2008 would be approximately $330,600.

Step-by-step explanation:

To determine the revenue for the year 2008, we need to find the revenue of plastic eggs that a small company received in 2000 and for which we are provided with information regarding the percentage of increase which is 3.5%. We are also provided with the information that in the year 2000, the company received $250,000 in revenue. We can use the formula for compound interest to calculate the revenue in 2008:

Revenue in 2008 = Revenue in 2000 ×
`(1 + annual increase)^(number of years)`

Substituting the values, we get:

Revenue in 2008 = $250,000 ×
`(1 + 0.035)^8` = $250,000 × 1.3224 ≈ $330,600