My Math Forum When will the revenue even ?

 Economics Economics Forum - Financial Mathematics, Econometrics, Operations Research, Mathematical Finance, Computational Finance

 September 6th, 2016, 02:18 PM #1 Newbie   Joined: Sep 2016 From: Poland Posts: 1 Thanks: 0 When will the revenue even ? Hey, I have to solve this super easy task but to be honest I have no idea how. This isn't exactly finance but had nowhere else to post so I thought I'd give it a try here. Company A has a yearly revenue of 300000 and it increases by 5% a year. Company B has a yearly revenue of 200000 and it increases by 7% a year. How long untill the revenue is even and how much will both companies earn at that point ? Cheers!
 September 6th, 2016, 04:17 PM #2 Senior Member     Joined: Sep 2015 From: USA Posts: 2,264 Thanks: 1198 Assuming the interest compounds annually we have $A = 300000(1+0.05)^n$ $B = 200000(1+0.07)^n$ where $n$ is in years setting these equal to one another we get $300000(1+0.05)^n=200000(1+0.07)^n$ $\dfrac 3 2 = \left(\dfrac{1.07}{1.05}\right)^n$ $\log(1.5) = n\left(\log(1.07) - \log(1.05)\right)$ $n = \dfrac{\log(1.5)}{\log(1.07) - \log(1.05)} \approx 21.49yr$

 Tags revenue

 Thread Tools Display Modes Linear Mode

 Similar Threads Thread Thread Starter Forum Replies Last Post MMath Economics 7 May 28th, 2016 08:03 PM Lucida Calculus 1 January 30th, 2013 04:25 PM kkelley Algebra 6 June 5th, 2012 07:13 PM tsl182forever8 Algebra 1 February 26th, 2012 08:25 PM gmcsmith@gmail.com Applied Math 0 May 31st, 2007 11:27 AM

 Contact - Home - Forums - Cryptocurrency Forum - Top