Question

7. A company's yearly profit during its first 5 years of operation can be modeled by the equation

P = 225(1.13)* + 400, where x is the number of years since the company started and P is the
profit in dollars. Draw a graph to represent this situation. If this pattern continues, what would
the company's profit be in year 7?

Answer 1

The company's projected profit in year 7, using the profit model P = 225(1.13)^x + 400, would be approximately $906.527. To graph the profit model, P should be plotted against x (the number of years), including an extension to year 7.

Step-by-step explanation:

Calculating Company's Profit in Year 7

To calculate the company's profit in year 7 using the given profit model P = 225(1.13)^x + 400, where x is the number of years since the company started, we substitute x with 7:

P = 225(1.13)^7 + 400

We follow these steps:

1. 
   
3. 
   
5. 
   

After calculating, we find that the company's projected profit for year 7 would be:

P = 225(2.255676) + 400

P ≈ 506.527 + 400

P ≈ $906.527

To graph this situation, we would plot P against x for the first 5 years and extend the curve to year 7 to estimate the profit.