Question

Joshua currently earns $5000 a year from his lawn care business. He has two plans to increase his revenue. Plan 1 would increase his yearly revenue by 20%. Plan 2 would increase his revenue by $1500 a year. What is the approximate percent of increase in revenue after 7 years for Plan 1? Round to the nearest whole number.

Answer 1

Plan 1 A=5,000×(1+0.20)^(7)=17,915.9
Plan 2 A=(1,500×7)+5,000=15,500
How much greater.. 17,915.9−15,500=2,415.9