Question

in the year 2000, a company made $4.7 million in profit. for each consecutive year after that, their profit increased by 15%. how much would the companys profit be in the year 2004, to the nearest tenth of a million dollars?

Explanation:

Step1: Identify growth formula

This is exponential growth, use $A = P(1+r)^t$
Where $P=4.7$ (initial profit), $r=0.15$ (growth rate), $t=4$ (years from 2000 to 2004)

Step2: Substitute values into formula

$A = 4.7 \times (1+0.15)^4$

Step3: Calculate the growth factor

$(1.15)^4 = 1.15 \times 1.15 \times 1.15 \times 1.15 = 1.74900625$

Step4: Compute final profit

$A = 4.7 \times 1.74900625 = 8.220329375$

Step5: Round to nearest tenth

Round $8.220329375$ to 1 decimal place

Answer:

8.2 million dollars