Profit in 2006: $7 million
First convert the percent into decimal: 9% = 0.09
Then use the percent increase then multiply by the number using this formula: ( 1 + r ) = ( 1 + 0.09) = 1.09
You only want to find how much profit in 2006, so you do this:
2003: 5.4
2004: 5.4 (1.09) = 5.886
2005: 5.886 (1.09) = 6.41574
2006: 6.41574 (1.09) = 6.99316
Then you take 6.99316 and round to the nearest tenth of a million dollars.
7 million dollars.
