In the year 2007 a company made 6 million in profit For each

In the year 2007, a company made $6 million in profit. For each consecutive year after that, their profit increased by 8%. How much would the company\'s profit be in the year 2009, to the nearest tenth of a million dollars?

Solution

In the year 2007, the company’s profit was $ 6 million. In the year 2008, their profit increased by 8 % i.e. to 6*1.08 million. Then, in 2009, their profit increased further by 8 % i.e. to 6*1.08*1.08 million = 6.9984 million = $ 7 million ( on rounding off to the nearest tenth of a million dollars).