Hi All,
I have the following question, which I have completed but I do not have any answers to these. So could someone tell me if I have got these correct?
Thanks.
A company made a profit of £54,000 in the year 2001. A model for future performance assumes that yearly profits will increase in an arithmetic sequence with common difference £d. This model predicts total profits of £619,200 for the 9 years 2001 to 2009 inclusive.
a) Find the value of d.
Sn = £619,200
a = £54,000
n = 9
619200 = 4.5(£108000 + 8d)
619200 = £486000 + 36d
36d = £133200
d = £3700
b) Use value of d, to find the predicted profit for the year 2011.
d = £3,700
a = £54,000
n = 11
a + d(n - 1) = 54000 + 3700(11 - 1) = £91,000.
Thanks again.
I have the following question, which I have completed but I do not have any answers to these. So could someone tell me if I have got these correct?
Thanks.
A company made a profit of £54,000 in the year 2001. A model for future performance assumes that yearly profits will increase in an arithmetic sequence with common difference £d. This model predicts total profits of £619,200 for the 9 years 2001 to 2009 inclusive.
a) Find the value of d.
Sn = £619,200
a = £54,000
n = 9
619200 = 4.5(£108000 + 8d)
619200 = £486000 + 36d
36d = £133200
d = £3700
b) Use value of d, to find the predicted profit for the year 2011.
d = £3,700
a = £54,000
n = 11
a + d(n - 1) = 54000 + 3700(11 - 1) = £91,000.
Thanks again.
.