math question?please help i just need to know how to do it!!!?

Question

thanks,i need a step by step instruction on how to find the rate of increase.here we go-the income for a video production company has been increasing at a constant rate. in 1992 the income was $4 million,in '95 the income was $5.5 million,and in 1998 the income was $7 million. can u please tell me how to find the rate of increase per year step by step.

im in the 8th grade so it needs to be kinda simple pleaz

Answer 1

1995 is 3 yrs more than 1992. so in 3 yrs the income increased 1.5 million, it went from 4 million up to 5.5 million.

from 1995 to 1998, another 3 yrs, it went up from 5.5 million to 7 million. so divide 1.5 by 3 to get how many million dollars it increases per yr, or .5 million (half a million, 500 thousand)

Answer 2

The easiest way to see this is to set up an Excel spreadsheet if you have that program on your computer. The following is the setup. Following that is the explanation.

Year|| Income ||Growth||
1992|| $4,000,000 ||||
1993|| $4,500,000 || $500,000 ||12.5%
1994|| $5,000,000 || $500,000 ||11.1%
1995|| $5,500,000 || $500,000 ||10.0%
Ttl|| Growth || $1,500,000 ||37.5%

The first thing is to find how many years the growth curve covers. The answer is 4 (1992, 1993, 1994, and 1995).

The next thing is to find out how much growth has occurred. The answer is $1,500,000 ($5,500,000 = $4,000,000)

Now think of this. The first year was a measurement at the END of the year, so the growth curve has to be for only the growth. That means instead of using 4 years we only use 3, as the income GREW in 1993, 1994, and 1995.

So divide the total growth by the number of years. The answer is $500,000 ($1,500,000 / 3).

Add that amount to each year after 1992 and you get the table I showed at the top.

The rate of growth is a ratio, which is represented by a percent sign. To find it, you take the total growth for a year and divide it by the starting income.

So in 1993, you start with $4,000,000 and you grow $500,000, so the growth is 12.5%. You do that for the other two years.

Then you also look at the total growth, which is $1,500,000 divided by the starting income or $4,000,000, which is 37.5% growth over a three year period.

Notice that each year the income growth is a bit smaller percentage, even though its the same income growth. That is because you divide by a larger number each year.

Answer 3

well. find the pattern.

1992 1995 1998 the difference is 3 years
4 mil 5.5 mil 7 mil the difference is 1.5 million

so if you keep adding 3 years to the top
and 1.5 million to the bottom

so it would be :

1992 1995 1998 2001 2004 2007
4 mil 5.5 mil 7 mil 8.5 mil 10 mil 11. 5 mil

Answer 4

... well for each year you subtract the amount of money in one year minus the one made in the year before it. 5.5-4= 1.5. then u do the next set- 7-5.5= 1.5 then u do 1.5+1.5 and u get 3. So they made 3million dollars more from 92 to 98. since that is 6 years u divide 3 by 6 and u get 1/2.. so the answer is 1/2 million if i understood the question correctly

Answer 5

1998 $7.0 - This is the final year of the increase, or the top #.

1995 5.5
----------- Subtract

1.5 increase from 1995 to 1998
=========== divided by first number
5.5 This represents the base number which is where the increase is to start.
There is a 1.5 increase over 1995.

= 27.27 %increase from 1995 to 1998



so now you calculate:
the increase from
1995 = 5.5 m
1992 = 4.0 m subtract
difference= 1.5m

1.5/4.0 = 37.5%

There is a 1.5 increase from 1992 over 1995.

My math reach said to state it terms.
IS over whatever is your beginning year, or base year.

What IS goes over the beginning year.

Now you can calculate one more:

How much was the increase from 1992 to the final year of 1998?



GOD bless
MBA-Boston Univ.
CPA-retired