In the year 2008, a company made $3.5 million in profit. For each consecutive year after that, their profit increased by 13%. How much would the company's profit be in the year 2010, to the nearest tenth of a million dollars?
Let solve step by step: How many years from 2008 to 2010: 2010-2008 = 2 years. For the first year the profit will be: [tex]3.5\times0.13=0.455\\\text{Add the profit to $3.5 like this:}\\3.5+0.455=3.955\\\text{Compute again the profite for the next year like this:}\\3.955\times0.13=0.5\\\text{Add the new profit to 3.955 like this:}\\3.955+0.5=4.47
[/tex] Answer: After two years, the profit of the company is $4.47 millions
