Answer:
The worth of the company in 2000 is $56,000.
Step-by-step explanation:
The growth rate of the company is:
To determine the worth of the company in 2000, first compute the change in the net worth during the period 1990 (<em>t</em> = 0) to 2000 (<em>t</em> = 10) as follows:
The increase in the company's net worth from 1990 to 2000 is $16,000.
If the company's worth was $40,000 in 1990 then the worth of the company in 2000 is:
Worth in 2000 = Worth in 1990 + Net increase in company's worth
Thus, the worth of the company in 2000 is $56,000.
