Question

In the year 2006, a company made $3.2 million in profit. For each consecutive year

after that, their profit increased by 14%. How much would the company's profit be in
the year 2009, to the nearest tenth of a million dollars?

Answer 1

To find the company's profit in 2009, we use compound annual growth with a 14% growth rate. By multiplying the previous year's profit by 1.14 consecutively for each year, we find the profit in 2009 is approximately $4.7 million.

Step-by-step explanation:

To calculate the profit in the year 2009, we need to apply the formula for compound annual growth to the initial profit, with the rate of growth given as 14%. The profit at the end of each year is found by multiplying the profit of the previous year by 114% (or 1.14 in decimal form) since the profit increases by 14% each year.

Here's the calculation for each year:

• Profit in 2007 = Initial Profit in 2006 × 1.14
• Profit in 2008 = Profit in 2007 × 1.14
• Profit in 2009 = Profit in 2008 × 1.14
  Step by step:

To the nearest tenth of a million dollars, the company's profit in 2009 would be $4.7 million.

Answer 2

Step-by-step explanation:

`A=ar^((x-1))\\ \\ A=3.2(1.14^((y-2006)))\\ \\ A=3.2(1.14^((2009-2006)))\\ \\ A=4.7 million`