SOLUTION: In the year 2003, a company made $6.5 million in profit. For each consecutive year after that, their profit increased by 8%. How much would the company's profit be in the year 2007

Question 1200361: In the year 2003, a company made $6.5 million in profit. For each consecutive year after that, their profit increased by 8%. How much would the company's profit be in the year 2007, to the nearest tenth of a million dollars?

Answer by ikleyn(52781) (Show Source): You can put this solution on YOUR website!
.
In the year 2003, a company made $6.5 million in profit.
For each consecutive year after that, their profit increased by 8%.
How much would the company's profit be in the year 2007,
to the nearest tenth of a million dollars?
~~~~~~~~~~~~~~~

The growth multiplicative coefficient for the profit, from year to year, 

is  (1+0.08) = 1.08.


The problem says that the profit next year is the profit this year 
multiplied by the growth coefficient 1.08.


So, in the year 2007, 4 years from 2003, the profit will be

     = 8.8 millions of dollars  (rounded).    ANSWER

Solved.

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