Answer:
$9.3 million
Step-by-step explanation:
Given that the company profit increases by 9% yearly from 2005.
Using the exponential growth formula;
A = P(1+r)^(t) .....1
Where;
A = final amount/value of profit
P = initial amount/value = $6.6 million
r = growth rate yearly = 9% = 0.09
t = time of growth in years = 2009 - 2005 = 4 years
Substituting the values;
A = 6.6(1+0.09)^(4)
A = 6.6(1.09)^(4)
A = 9.3164386 million
A = $9.3 million
The companies profit in the year 2009 to the nearest 10th of $1 million is $9.3 million
