Question

The projected worth (in millions of dollars) of a large company is modeled by the equation w = 236(1.06) t. 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? A. 6%; $448.00 million B. 16%; $474.88 million C. 16%; $250.16 million D. 6%; $422.64 million

Answer 1

A. 6%, $448 million

Explanation:

a) The base of the exponential term is 1.06, so the projected annual growth is 1.06 -1 = .06 = 6%

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b) Filling in 11 for t, we find the projected worth to be ...

w = 236(1.06^11) ≈ $448 . . . million