Leonard owns a business earning $37,800 in profits. These profits are appreciating at about 2.3% each year. What are Leonard's profits after eight years? (2 points)
$38,383.50
$45,341.60
$31,379.67
$44,755.20

Respuesta :

Answer:

  • B. $45341.60

Step-by-step explanation:

Given:

  • Initial profit = $37800
  • Rate of appreciation = 2.3% per year

The equation for this:

  • [tex]P(t) = 37800*(1 + 0.023)^t = 37800*1.023^t[/tex]

Find the value of P(8):

  • [tex]P(8) = 37800*1.023^8 = 45341.60[/tex]

Correct choice is B