Question

In the year 2005, a company made $5.8 million in profit. For each consecutive year after that, their profit increased by 7%. How much would the company's profit be in the year 2009, to the nearest tenth of a million dollars

Answer 1

The profit in 2009 is 6.708 million dollars.

Step-by-step explanation:

To find the company's profit in the year 2009, we need to calculate the consecutive increase in profit from 2005 to 2009.

First, calculate the increase in profit for each year using the formula:

Increase = Profit * Increase percentage

For 2006, the increase is 5.8 million * 7% = 0.406 million

For 2007, the increase is (5.8 million + 0.406 million) * 7% = 0.433 million

For 2008, the increase is (5.8 million + 0.406 million + 0.433 million) * 7% = 0.469 million

Finally, to find the profit in 2009, add up the increases: 5.8 million + 0.406 million + 0.433 million + 0.469 million = 6.708 million (rounded to the nearest tenth of a million).

Answer 2

Profit in 2009 = 7.602616858 million = 8 million

Step-by-step explanation:

given data

profit = $5.8 million

profit increased = 7%

solution

we first get here profit in 2006 that is

Profit in 2006 = profit × ( 1 + increase profit % )

Profit in 2006 = $5.8 million × ( 1 + 7% )

Profit in 2006 = $6.206 million

and

Profit in 2007 = $6.206 million × ( 1 + 7% )

Profit in 2007 = 6.64042 million

and

Profit in 2008 = 6.64042 million × ( 1 + 7% )

Profit in 2008 = 7.1052494 million million

and

Profit in 2009 = 7.1052494 million × ( 1 + 7% )

Profit in 2009 = 7.602616858 million

Profit in 2009 = 8 million