Question

Increasing at a constant rate,a company's profits y have gone form $535 milion in 1985 to $570 million in 1990. Find the expected level of profit for 1995 if the trend continues. 2)

Answer 1

Answer:

total profit=$607.278

Step-by-step explanation:

company's profit in 1985= $535 million

company's profit in 1990=$570 million

growth rate = $\frac{570-535}{535}\times 100$

                    = $\frac{35}{535} \times 100$

                    = 6.54 %

profit in year 1995 will be = $\frac{6.54}{100}\times 570 =\ \ 37.278$

hence total profit= $570+$37.278

                             = $607.278