What percentage must the label's profit increase by to be worth 100 million dollars in 2 years?

Question

Suppose a record company with an operating profit of 76.95 million dollars wants to increase it's profit to 100 million dollars in two years.

 

A Step-by-Step procedure would be very much appreciated. Thanks in advance.

Answer 1

A = RB

 

A is the amount of increase

R is the rate of increase

B is the Base = 76.95

 

A = 100-76.95 = 23.05

 

23.05 = R(76.95)

 

23.05/76.95 = R = rate of increase = 29.95% increase