Question

In the year 2003, a company made $6.5 million in profit. For each consecutive year after that, their profit increased by 8%. How much would the company's profit be in the year 2007, to the nearest tenth of a million dollars?

Answer 1

To find the company's profit in the year 2007, we can use the formula: Profit in Year = Profit in Previous Year + Profit in Previous Year * 0.08. Starting with the initial profit of $6.5 million in 2003, we can calculate the profit for each year and add them up. The company's profit in the year 2007 would be approximately $8.8 million.

Step-by-step explanation:

To find the company's profit in the year 2007, we need to calculate the profit for each year after 2003 and add them up. Since the profit increases by 8% each year, we can use the formula:

Profit in Year = Profit in Previous Year + Profit in Previous Year * 0.08

Starting with the initial profit of $6.5 million in 2003, we can calculate:

Profit in 2004 = $6.5 million + $6.5 million * 0.08 = $7.02 million

Profit in 2005 = $7.02 million + $7.02 million * 0.08 = $7.5624 million

Profit in 2006 = $7.5624 million + $7.5624 million * 0.08 = $8.1516 million

Profit in 2007 = $8.1516 million + $8.1516 million * 0.08 = $8.8046 million

Therefore, the company's profit in the year 2007 would be approximately $8.8 million.

Answer 2

$8,580,000 (rounded) = $9,000,000

Step-by-step explanation:

Keep in mind, 2007 is four years after 2003.

So, 8(%) • 4 = 32(%)

Over the course of 4 years, the companies profits increased by a total of 32 percent.

(*Write 6.5m in standard form)

6,500,000 + 32% = $8,580,000

8,580,000 (rounded up) = 9,000,000