Question

In a company's first year in operation, it made an annual profit of \$122,000$122,000. The profit of the company increased at a constant 9% per year each year. How much total profit would the company make over the course of its first 15 years of operation, to the nearest whole number?

Answer 1

Answer: the company made $152,971,589 total profit over 25 years

Explanation:

Answer 2

$444,383.

Explanation:

Let x represent number of years.

We have been given that in a company's first year in operation, it made an annual profit of $122,000. The profit of the company increased at a constant 9% per year each year.

We will use exponential growth function to solve our given problem.

`y=a(b)^x`, where

a = Initial value,

b = For growth b is in form
`1+r`.

`r=(9)/(100)=0.09`

`y=122,000(1+0.09)^x`

`y=122,000(1.09)^(15)`

`y=122,000(3.6424824596875201)`

`y=444382.86008187`

`y\approx 444,383`

Therefore, the company would make a profit of $444,383 over the course of its first 15 years of operation.