Question

The projected worth (in millions of dollars) of a large company is modeled by the equation w = 261(1.06) t. The variable t represents the number of years since 2000. What is the projected annual percent of growth, and what should the company be worth in 2009?

Answer 1

I believe you meant w(t) = 261(1.06)^t, where " ^ " indicates exponentiation.

The projected annual growth rate comes directly from the "1.06" in this equation: It is 0.06, or 6%.

2009 is 9 years past 2000, so let t=9.

Then w(9) = 261(1.06)^9 = $440.95 million.

This is the projected company worth in 2009.