Question

in the year 2005 a company made $6.6 million in profit for each consecutive year after that their profit increase by 9% how much would a companies profit be in the year 2009 to the nearest 10th of $1 million

Answer 1

$9.3 million

Explanation:

Given that the company profit increases by 9% yearly from 2005.

Using the exponential growth formula;

A = P(1+r)^(t) .....1

Where;

A = final amount/value of profit

P = initial amount/value = $6.6 million

r = growth rate yearly = 9% = 0.09

t = time of growth in years = 2009 - 2005 = 4 years

Substituting the values;

A = 6.6(1+0.09)^(4)

A = 6.6(1.09)^(4)

A = 9.3164386 million

A = $9.3 million

The companies profit in the year 2009 to the nearest 10th of $1 million is $9.3 million