A company made a profit of 8.6 million in it's first year. It lost 5.9 million in it's second year and lost another 6.3 million in it's third year.
a) What was the average profit or less per year over the first three years?
b) The company broke even over the first four years. What was it's profit or loss in the fourth year?
The company had a loss of $3.6 million in its first three years, so the average is:
-3.6/3 = -1.2 million dollars
I divide it by three because of the three years.
loss of $1.2 million per year
8.6 - 5.9 - 6.3 = -3.6
The company had to have gained 3.6 million dollar to have raised the amount to 0, since it was at -3.6 before hand.
profit of $3.6 million
*I did B first.
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