Question

The projected worth (in millions of dollars) of a large company is modeled by the equation y equals 271 left parenthesis 1.07 right parenthesis to the power of x the variable x represents the number of years since 1997. what is the projected annual percent of growth, and what should the company be worth be in 2008?

Answer 1

For this case we have the following equation:
 y = 271 * (1.07) ^ x
 The percentage of annual growth is given by:
 (1.07-1) * (100) = 7%
 For the year 2008 we have:
 y = 271 * (1.07) ^ 11
 y = 570.41 million of dollars
 Answer:
 The projected annual percent of growth is:
 7%
 the company should be worth 570.41 million of dollars in 2008