A company had a net profit of 8 million dollars in 1991 and 11.2 million dollars in 1999.

A company had a net profit of 8 million dollars in 1991 and 11.2 million dollars in 1999.

What was the average percentage rate of growth for an exponential model for the profit?

Give your answer as a percent (without the percent sign), with two decimal digits of precision.

Answers
n=8
liam1369
27 June 2013
11.2=8(x)^8 therefore, 11.2/8 = (x)^8
liam1369
27 June 2013
Therefore percentage increase = 4.3% (2 decimal places)
liam1369
27 June 2013
x=8th root of (11.2/8) = 1.0430
liam1369
27 June 2013
I don't know how much uou
Ian S.
28 June 2013
i don't Know how much you understand of the process. The money has made 3.2 mill in 8 yeArs or 40 pc. If the annual rate is xpc it has grown by .0x ea
Ian S.
28 June 2013
EAch year. We need to take logs to find x as a compound rate. Basically ln(0.4) is 8 times ln(x) or lid is ln0.4/8. X is exp that. Fraction. Hope that helps
Ian S.
28 June 2013
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