Question

In the year 2007, a company made $6.6 million in profit. For each consecutive year after that, their profit increased by 13%. How much would the company's profit be in the year 2010, to the nearest tenth of a million dollars?

Answer 1

$9.5 million

Explanation:

Profits = $6.6 million

Each year increase = 13% = 0.13

2007 - 2010 = 3 years

Profits = 6.6(1 + .13)^3

= 6.6(1.13)^3

= 6.6 × 1.442896

= $9.5231202 million

Approximately $9.5 million to the tenths of a million dollars