Question

In the year 2005, a company made $5.8 million in profit. For each consecutive year after that, their profit increased by 7%. How much would the company's profit be in the year 2009, to the nearest tenth of a million dollars

Answer 1

Answer:

Profit in 2009 = 7.602616858 million = 8 million

Explanation:

given data

profit = $5.8 million

profit increased = 7%

solution

we first get here profit in 2006 that is

Profit in 2006 = profit × ( 1 + increase profit % )

Profit in 2006 = $5.8 million  × ( 1 + 7% )

Profit in 2006 = $6.206 million

and

Profit in 2007 = $6.206 million   × ( 1 + 7% )

Profit in 2007 = 6.64042 million

and

Profit in 2008 = 6.64042 million   × ( 1 + 7% )

Profit in 2008 = 7.1052494 million  million

and

Profit in 2009 = 7.1052494 million   × ( 1 + 7% )

Profit in 2009 = 7.602616858 million

Profit in 2009 = 8 million