Question

The projected worth (in millions of dollars) of a larger company is modeled by the equation w=241(1.06)t. The variable t represent the number of years since 2000. What is the project annual percent of growth, and what should the be worth in 2001?

Answer 1

The equation is

$w=241(1.06)^t$

And here variable t represents the number of years since 2000.

In 2001 means t=2001 -2000 = 1

So we plug 1 for t in the given expression , that is

$w =241(1.06)^1 = 241*1.06 = 255.46$

Therefore in 2001, it should be worth to 255.46.

And in the given expression 1.06=1 +0.06, where 0.06 is the annual percent of growth that is 6 % .