# Suppose that the wealth of a business owner is increasing exponentially. In 1993, he had $40 million. In 2001, he had $55 million. How much money will he have in 2010?

##### 1 Answer

Apr 8, 2016

#$78.68 million.

#### Explanation:

Let wealth

Unit of w is $ 1 million and unit of y is 1 year.

Let y =0, at the start year 1993, and the wealth w= 40, then.

Using start conditions y = 0 and w = 40,

a = 40.

Using the corresponding values y = 2001-1993 = 8 and w = 55 then,

So, the model for wealth is

At 2010, y = 2010-1993 = 17. w then will be #40(1.04006)^17 = 78,68.

Answer: $ 78.68 million, nearly. .