SOLUTION: A business has a $20,000 profit in 1990. The profit increased by 20% per year for the next 10 years. Write an exponential growth model.

Algebra ->  Exponential-and-logarithmic-functions -> SOLUTION: A business has a $20,000 profit in 1990. The profit increased by 20% per year for the next 10 years. Write an exponential growth model.      Log On


   

Question 578260: A business has a $20,000 profit in 1990. The profit increased by 20% per year for the next 10 years. Write an exponential growth model.
Answer by dfrazzetto(283) About Me  (Show Source):
You can put this solution on YOUR website!

E = Profit ( 1 + 20%)^n(years)
E = 20,000(1 + 1/5)^10
E = 20,000(6.19173642) = $123,834.73