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Brink of tears All my points
Rhonda started a business. Her business made $30,000 in profits the first year. Her annual profits have increased by an average of 5% each year since then.

A) Write an iterative rule to model the sequence formed by the profits of Rhonda’s business each year.
B) Use the rule to determine what the annual profits of Rhondas business can be predicted to be 15 years from the start of her business. Round your answer to the nearest dollar. Do not round until the end. Show your work

Brink of tears All my points Rhonda started a business Her business made 30000 in profits the first year Her annual profits have increased by an average of 5 ea class=

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Answer:

(a) $ 30000 + 1500 t

(b) $ 52500

Step-by-step explanation:

Initial profit = # 30,000

Profit increases every year by 5 %.

(a) Let the profit after t year is

P = $ 30,000 + 5% of 30,000 t  = $ 30000 + $ 1500 t

(b) t = 15 years

P = $ 30000 + $ 1500 x 15 = $ 52500  

Using exponential function concepts, it is found that:

a) The model is: [tex]A(t) = 30000(1.05)^t[/tex]

b) The prediction for her profits in 15 years is of $62,368.

What is an exponential function?

An increasing exponential function is modeled by:

[tex]A(t) = A(0)(1 + r)^t[/tex]

In which:

  • A(0) is the initial value.
  • r is the growth rate, as a decimal.

Item a:

  • Her business made $30,000 in profits the first year, hence [tex]A(0) = 30000[/tex].
  • Her annual profits have increased by an average of 5% each year since then, hence [tex]r = 0.05[/tex].

Then, the model is:

[tex]A(t) = A(0)(1 + r)^t[/tex]

[tex]A(t) = 30000(1 + 0.05)^t[/tex]

[tex]A(t) = 30000(1.05)^t[/tex]

Item b:

In 15 years, the estimate for the profits is of:

[tex]A(15) = 30000(1.05)^{15} = 62368[/tex]

The prediction for her profits in 15 years is of $62,368.

You can learn more about exponential function concepts at https://brainly.com/question/25537936

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