Question

The projected worth (in millions of dollars) of a large company is modeled by the equation w = 206(1.1) 1. The variable t represents the number of years since 2000. What is the projected annual percent of growth, and what should the company be worth in 2011?

Answer 1

Exponential projection of growth

equation is w = 206 (1.1)^ t

How many years had passed ? = 2011- 2000 = 11 years

Then now calculate (1.1)^11

(1.1)^11 = 2.853

Then w = 206• (2.853) million dollars = $587.74 million of dollars

company be worth in 2011