Question

@tcarroll010
The number of customers visiting a local business is 61,874 and has been continuously declining at a rate of 3.5% each year. What is the approximate number of customers in 15 years?

I=PxRxT-P
I=61,874*3.5%*15
I=32483.85-61874
I=29390.15< ----

Answer 1

(61874)(1.0 - 0.035)^15

I'm not sure how we are going to match this up to any of the 4 listed options, but I'll explain what I am doing with this equation.

61874 is what we start with and every year we have 1.0 - 0.035 or 96.5% of that. Therefore, we have 0.965 as a factor for every year and that's why we have that factor to the 15th power.

Answer 2

For example, after the first year we have:

(61874)(0.965) which is 96.5 % of 61874

After the second year, we have:

[(61874)(0.965)] times (0.965) or (61874)(0.965)^2

So, you can see that the exponent on (0.965) is going to dictate the years.

Answer 3

This will definitely give you the right answer. Where did you get the options listed in your problem statement?

Answer 4

36,602

29,390

104,595

36,259

Answer 5

ok, that's better. The right answer is among them and can be derived from my first post. Can you simplify:

(61874)(1.0 - 0.035)^15

?

Answer 6

First, take 1.0 - 0.035 and raise that to the 15th power. Take that number and multiply it by 61874. What do you get?

Answer 7

http://www.wolframalpha.com/input/?i=61%2C874%28.965%29%5E15

Answer 8

You did it! Good job! So, it's the last one.

Answer 9

Lee owns a business earning $25,400 in profits. These profits are appreciating at about 1.9% each year. What are Lee’s profits after seven years?

(25,400)(1.0-1.9%)^7 ?

Answer 10

Since you started the question here already, I'll help, but in the future, you might want to really consider starting another post for each problem because what happens if I log off? No one will probably come here to help. They'll think the problem is over because they'll probably just see the first one.

It's (25400(1 + 0.019)^7

You had it right except for the minus sign. It should have been a positive, because the profits are appreciating, not depreciating.

Answer 11

I got IT ! http://www.wolframalpha.com/input/?i=%2825400%29%281+%2B+0.019%29%5E7

Answer 12

@tcarroll010 can you correct me on something ?

Answer 13

Sure, but it looks like you did fine with this one.

Answer 14

Part I: Describe compound interest.
Part II: Describe exponential growth.
Part III: Describe the relationship between compound interest and exponential growth.

1.) Compound Interest when interest is added to the principal.
2.) Exponential growth is constant rate of growth applied to growing base over period of time.
3.)I would say that compound is the form of the exponential growth.Compound interest is modeled as exponential growth problem.

Answer 15

Put this in another post and either I or someone else will come by to help.