Question

A corporation is initially worth 88 million dollars and is growing in value, VV, by 24% each year, and is additionally gaining 30% of a growing market estimated at 100e0.24t million dollars, where tt is the number of years the company has existed. Approximate the value of the company after 7 years. (Round your answer to the nearest million dollars.)

V=________________ (Million Dollars)

Answer 1

Answer: After 7 years , the value of the company will be 1599 million dollars.

Step-by-step explanation:

See the picture attached

Answer 2

The corporation's value after 7 years is 397 Million Dollars, using the exponential growth function.

What is the exponential growth function?

The exponential growth function (see attachment for more information) is useful in valuing the following with a constant percentage per period:

• The value of an investment
• The sales value of a company
• Other models of economic growth or the disease spread.

Data and Calculations:

Initial value of the corporation = $88 million

Growth rate, r, = 24% each year

Number of years = 7 years

The value of the corporation = F(x) =$88 (1+0.24)^7

= $88 x 4.508

= $396.704

= $397 million

Thus, the corporation's value after 7 years is $397 million.

Learn more about using the exponential growth function to determine the value of a company at https://brainly.com/question/9351490