Answer:
The yearly growth percentage is 5%
The worth of the company in 2010 is 433 million of dollars approximately
Step-by-step explanation:
The annual growth percentage;
We can write the equation of w as follows;
W = 266 (1 + 0.05)^t
Compare this with ;
W = I(1 + r)^t
Where W is the worth at a particular year
I is the initial worth at year 2000
r is the rate of increase per year
and t is the time since 2010
where it is the 0.05 that represents the yearly growth percentage (r)
0.05 as a percentage is 5/100 which is 5%
Now, we want to calculate the worth of the company in the year 2010
The first thing to do here is to calculate the value of t.
The value of t is the difference between the years 2000 and 2010 and that is 2010-2000 = 10 years
Now to find the worth at 2010, simply substitute that value of t = 10 in the equation
Thus;
W = 266(1.05)^10
W = 433.2859707228
Which is approximately 433
