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12 April, 23:37

In the year 2006, a company made $2.4 million in profit. For each consecutive year after that, their profit increased by 12%. How much would the company's profit be in the year 2010, to the nearest tenth of a million dollars?

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  1. 13 April, 03:08
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    Step-by-step explanation:

    For each consecutive year after that, their profit increased by 12%. The growth is exponential. We would apply the formula for exponential growth which is expressed as

    A = P (1 + r) ^t

    Where

    A represents the profit made after t years.

    t represents the number of years.

    P represents the initial profit made.

    r represents rate of increase.

    From the information given,

    P = 2.4 * 10^6

    r = 12% = 12/100 = 0.12

    t = 4 years

    Therefore,

    A = 2.4 * 10^6 (1 + 0.12) ^4

    A = 2.4 * 10^6 (1.12) ^4

    A = 3776446.5
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