A company has introduced two new products to the market. The revenue generated by product A was $63,000 in the first year, and the revenue increases by 3.5% every year.

The revenue generated by product B was $81,000 in the first year, and the revenue increases by 2.1% every year.

Which function can the company use to determine its total revenue from the two products, R (x), after they have been on the market for x years, and approximately what will be the revenue generated by sales of the products after 6 years?

R (x) = 9,000[7 (1.035) x + 9 (1.021) x]; $635,580

R (x) = 9,000[7 (1.035) x + 9 (1.021) x]; $169,200

R (x) = 9,000[9 (1.035) x + 7 (1.021) x]; $170,936

R (x) = 9,000[9 (1.035) x + 7 (1.021) x]; $688,050

Question

Mathematics

Justice Kirby

7 March, 17:40

A company has introduced two new products to the market. The revenue generated by product A was $63,000 in the first year, and the revenue increases by 3.5% every year.

The revenue generated by product B was $81,000 in the first year, and the revenue increases by 2.1% every year.

Which function can the company use to determine its total revenue from the two products, R (x), after they have been on the market for x years, and approximately what will be the revenue generated by sales of the products after 6 years?

R (x) = 9,000[7 (1.035) x + 9 (1.021) x]; $635,580

R (x) = 9,000[7 (1.035) x + 9 (1.021) x]; $169,200

R (x) = 9,000[9 (1.035) x + 7 (1.021) x]; $170,936

R (x) = 9,000[9 (1.035) x + 7 (1.021) x]; $688,050

+2

Answers (2)

Know the Answer?

Erin Johns · Answer 1

For this case we have functions of the form:

y = A (b) ^ x

Where,

A: initial amount

b: growth rate

x: time

Therefore, substituting values we have:

Product A:

y = 63000 (1,035) ^ x

Product B:

y = 81000 (1,021) ^ x

The sum of the products is:

R (x) = 63000 (1,035) ^ x + 81000 (1,021) ^ x

Rewriting:

R (x) = 9000 (7 (1,035) ^ x + 9 (1,021) ^ x)

Evaluating for 6 years:

R (6) = 9000 * (7 * (1,035) ^ 6 + 9 * (1,021) ^ 6)

R (6) = 169200 $

Answer:

The revenue generated by sales of the products after 6 years is:

R (x) = 9,000 [7 (1,035) x + 9 (1,021) x]; $ 169,200

Kallie Hicks · Answer 2

The correct answer is R (x) = 9,000[9 (1.035) x + 7 (1.021) x]; $170,936