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Gnesinka [82]
3 years ago
13

Leonard owns a business earning $37,800 in profits. These profits are appreciating at about 2.3% each year. What are Leonard's p

rofits after eight years? (2 points)
$38,383.50
$45,341.60
$31,379.67
$44,755.20
Mathematics
1 answer:
satela [25.4K]3 years ago
3 0

Answer:

  • B. $45341.60

Step-by-step explanation:

<u>Given:</u>

  • Initial profit = $37800
  • Rate of appreciation = 2.3% per year

<u>The equation for this:</u>

  • P(t) = 37800*(1 + 0.023)^t = 37800*1.023^t

<u>Find the value of P(8):</u>

  • P(8) = 37800*1.023^8 = 45341.60

Correct choice is B

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