Question

Suppose the function y = 30,000(1.06)x models the annual profit for a small business x years after 2000. Find the profit at the end of 2011.

Answer 1

From 2000 to 2011, there are 11 years. From the given function, we can calculate the profit for a small business at the end of 2011 by substituting 11 to the x of the given equation.
y = (30,000)(1.06)(11)
y = 349,800
Thus, the profit at the end of 2011 is approximately $349,800.