Question

A hockey player earns 2 million in 2015 during the next 10 years to earnings increase 5% each year write an explanation growth model giving the earnings Y in millions of dollars T years after 2015 write the base of the model as a decimal

Answer 1

Answer:

$Y(T) = 2(1.05)^T$

Step-by-step explanation:

The player's salary, in millions of dollars, t years after 2015, is given by an equation in the following format:

$Y(T) = Y(0)(1+r)^T$

In which Y(0) is his initial salary and r is the growth rate, as a decimal.

A hockey player earns 2 million in 2015 during the next 10 years to earnings increase 5%

This means, respectively, that:

$Y(0) = 2, r = 0.05$

So

$Y(T) = Y(0)(1+r)^T$

$Y(T) = 2(1+0.05)^T$

$Y(T) = 2(1.05)^T$