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nalin [4]
2 years ago
12

Demand for electrical services in your area is $12 million per year. It is expected to grow 10% compounded annually

Mathematics
2 answers:
sergey [27]2 years ago
8 0

\qquad \textit{Amount for Exponential Growth} \\\\ A=P(1 + r)^t\qquad \begin{cases} A=\textit{accumulated amount}\\ P=\textit{initial amount}\dotfill &\stackrel{millions}{\$12E6}\\ r=rate\to 10\%\to \frac{10}{100}\dotfill &0.10\\ t=\textit{elapsed time}\dotfill &5\\ \end{cases} \\\\\\ A=12E6(1 + 0.10)^{5}\implies A=12E6(1.1)^5\implies A=19326120

astraxan [27]2 years ago
3 0

Answer:

  $19.3 million

Step-by-step explanation:

The demand in 5 years can be found by using the given formula for exponential growth with the given beginning value, growth rate, and time.

  E = B(1 +r)^t

You are given B = 12, r = 0.10, t = 5, so the ending value is ...

  E = 12(1 +0.10)^5 = 12(1.61051) = 19.32612

Demand for electrical services in 5 years will be about $19.3 million per year.

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