How Much Revenue Will Joey Recieve From The Use Of The Tractor?
Joey bought a new tractor for use in his landscaping business. He expects that the use of the tractor will generate 4500 dollors of revenue in the first year with an increase in revenue of 400 dollars per year for subsequent years. If the tractors useful lifetime is 7 years how much revenue will joes receive from the use of the tractor
November 14th, 2009 at 7:40 pm
make a table
year__ revenue
1_____4500
2_____4500+400 = 4900
3_____4900+400 = 5300
etc up to year 7
add them up and you get your answer
Or…
see the trend and make a formula
R = (4500 + 0*400) + (4500 + 1*400) + (4500 + 2*400) + … + (4500 + 6*400)
R = 7*4500 + 400 * ( 1+2+3…+6)
Do you know the formula for adding all the integers from 1 to n? It is n(n+1)/2
R = 7*4500 + 400 * 6 * 7/2
That should do it.