Solve the Problem The Accountant Then Fit Both a Linear Graph and an Four

question 9

Multiple Choice

Solve the problem.
-An accountant tabulated a firm's profits for four recent years in the following table:
$\begin{array} { l | l } \text { Year } & \text { Profits } \\\hline 1996 & \$ 250,000 \\1997 & \$ 300,000 \\1998 & \$ 400,000 \\1999 & \$ 600,000\end{array}$

The accountant then fit both a linear graph and an exponential curve (seen below) to the data, in order to estimat profits. Use the exponential graph to estimate the profits in the year $2002 .$

• A) About \(\$ 1,000,000\)
• B) About \(\$ 1,700,000\)
• C) About \(\$ 1,300,000\)
• D) About \(\$ 750,000\)

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Definitions:

Declared Preferred Dividends

Dividends announced by a company's board of directors to be paid on preferred shares.

Preemptive Right

A shareholder's right to maintain their proportional ownership in a company by buying a proportionate share of any new stock issues.

Common Shareholders

Individuals or entities that own common shares in a company, giving them voting rights and a share in the company's profits.

Proxy Right

A right granted to an individual or group to vote on behalf of another person, usually a shareholder, in corporate decisions and elections.