Question

3. The yearly profits of a company is $5,000. The profits have been decreasing by 6% per year.

Answer 1

Answer:

5000 X (0.96)^n

$3607

Step-by-step explanation:

Profit decreases at a rate of 6% per year = 100 - 6 = 96%

In year 1, profit would be = 5000 x 0.96 = 4800

In year 2 = 5000 x 0.96^2 =

5000 X (0.96)^n

5000 X (0.96)^8 = $3607