Question

The number of employees for a certain company has been decreasing each year by 6​%. If the company currently has 720 employees and this rate​ continues, find the number of employees in 10 years.

Answer 1

So the employees are decreasing by 6% every year.

We would represent this as: 0.06

We would represent 720 as: 720(1- .05)^0=720

So the equation would be: 720(1-0.06)^10=X
720(0.94)^10=X
720(0.53861511409)=X
387.8=X
388=X
So, after 10 years the company would have 388 employees left.

Answer 2

There will be 387

Explanation:

This question is an example of compound decrease.

To work this out you would first have to convert the percentage of 6 into a decimal. You can do this by dividing the percentage of 6 by 100, this gives you 0.06. This is because percentages are out of 100.

The next step is to minus 0.06 from 1, this gives you 0.94. This is because we are working out the percentage decrease.

Finally to work this out you would multiply the amount of 720 by 0.94 to the power of 10, this gives you 387.80. However there can not be a decimal of a person and so it becomes 387. This is because it is working out 6% and subtracting it and then working out 6% of that new amount. This repeats 10 times.

1) Divide 6 by 100.

`6/100=0.06`

2) Minus 0.06 from 1.

`1-0.06=0.94`

3) Multiply 720 by 0.94 to the power of 10.

`720*0.94^10=387.80`

4) Round down

387