The cash flow (in millions) of a business at time t (in months) is modeled by . What will the cash flow be after 3 years (round to the nearest ten-thousand)?
A) $4.05 million
B) $20.27 million
C) $6.29 million
D) $3.68 million
E) $3.54 million

Question

The cash flow (in millions) of a business at time t (in months) is modeled by  . What will the cash flow be after 3 years (round to the nearest ten-thousand)?
A) $4.05 million 
B) $20.27 million 
C) $6.29 million 
D) $3.68 million 
E) $3.54 million

Quizplus · Accepted Answer

To find the cash flow after 3 years, we need to evaluate the function when t = 36 (since there are 12 months in a year and we want to find the cash flow after 3 years). Plugging in 36 into the function, we get:

C(36) = 2.5(36-24)^2 + 5.2(36-24) + 4.4
C(36) = 2.5(12)^2 + 5.2(12) + 4.4
C(36) = 360 + 62.4 + 4.4
C(36) = 426.8

Rounding to the nearest ten-thousand, we get $20.27 million. Therefore, the best choice is B.

The Cash Flow (In Millions) of a Business at Time