To solve this problem, we can use the formula for compound interest, which is:
A = P(1 + r)^n
Where:
A = final amount
P = initial amount
r = rate of increase (in decimal form)
n = number of years
In this case:
P = 3 (initial number of employees)
r = 0.12 (12% increase in employees per year)
n = 10 years
A = 3(1 + 0.12)^10
A = 3(1.12)^10
A = 3(2.85311671)
A = 8.559350126
Therefore, after 10 years, the firm will employ approximately 8 people.
Every year your firm employs 12% more employees. If your firm started with three employees, how many people will be employed after 10 years?
1 answer