Question

A hockey player earns 2 million in 2015 during the next 10 years to earnings increase 5% each year write an explanation growth model giving the earnings Y in millions of dollars T years after 2015 write the base of the model as a decimal

Answer 1

`Y(T) = 2(1.05)^T`

Explanation:

The player's salary, in millions of dollars, t years after 2015, is given by an equation in the following format:

`Y(T) = Y(0)(1+r)^T`

In which Y(0) is his initial salary and r is the growth rate, as a decimal.

A hockey player earns 2 million in 2015 during the next 10 years to earnings increase 5%

This means, respectively, that:

`Y(0) = 2, r = 0.05`

So

`Y(T) = Y(0)(1+r)^T`

`Y(T) = 2(1+0.05)^T`

`Y(T) = 2(1.05)^T`