Suppose that the wealth of a business owner is increasing exponentially. In 1993, he had a $40 million. In 2001, he had $55 million. For the domain of 1993 to 2010, what is a reasonable range for this situation?

Solution:

The exponentially rate is r

So

y=40e^(rt)

When r=2001-1993=8

y=40e^(8r)=55

r=0.0398

When t=2010-1993=17

y=40e^(0.0398*17)=78.7

So the range is (40, 78.7)