Question

In 1990, the profit of the Gamna company was $10,007,911. each year after 1990, profits fell by $37,104 on average. construct a linear model for this scenario and use it to solve for the profits in the year 2020.

Answer 1

In this case, we'll have to carry out several steps to find the solution.

Step 01:

Data

initial profit = $10,007,911

profits fell per year = $37,104

linear model = ?

profits (2020) = ?

Step 02:

linear model:

x = years

y = 10007911 - 37104 x

Step 03:

profits (2020):

x = 30

y = 10007911 - 37104 (30)

y = 8894791

The answer is:

linear model: y = 10007911 - 37104 x

profits (2020): $8,894,791