Leroy owns a business earning $49,300 in profits. These profits are appreciating at about 2.9% each year. What are Leroy's profits after nine years?
$62,167.30
$37,828.58
$63,765.43
$50,382.70

Question

Leroy owns a business earning $49,300 in profits. These profits are appreciating at about 2.9% each year. What are Leroy's profits after nine years? 
$62,167.30 
$37,828.58
$63,765.43
$50,382.70

justjm · Answer

Initial value is 49,300
It's appreciating, or increasing, by 2.9% *annually*. In math speak, it's increasing by a factor of 1.029.
You can represent the scenario by this equation:

$f(t)=49,300(1.029)^t$
Where t = time

It's asking for profit after 9 years, so find $f(9)$ given the function I gave you.