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?
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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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