when will the company profit be 217.9 million dollars?

Question

in 1990, a company's profit was 44.0 million dollars. in 2000, the company's profit was 119.6 million dollars. assume that the growth of the company's profit follows the exponential model and use 1990 as the base 9(t=0). when will the company profit be 217.9 million dollars?

Answer 1

Earnings(2000)/Earnings(1990) = e^gt wher t = 10 years and t= 10 years and g = growth rate.

Take natural log s on both side and get Ln(E(2000))-Ln(E(1990)) = g*10 or g = !/10 (ln(119.6)-ln(44)= 10% (almost really9.9996%) so we want 44 million growing at 10 percent compounded continually to equal 217.9 now we take Ln( 217.9/44) = t*10% or t = ln(217.9/44) / 10% or t = 15.97 tears