A company produces 1000 units of a product per day. Due to increased demand, they decide to increase production by 10% each day for the next week (7 days). How many units will they produce on the seventh day?
To determine how many units the company will produce on the seventh day, we need to apply the daily percentage increase to the initial production value over the course of seven days.

The formula for calculating compound interest can be used here:

Final production = Initial production * (1 + Percentage increase)^Number of days

In this case, the initial production is 1000 units, the percentage increase is 10%, and the number of days is 7.

First, convert the percentage increase to a decimal:

10% = 0.1

Now, plug these values into the formula:

Final production = 1000 * (1 + 0.1)^7
                          = 1000 * (1.1)^7
                          ≈ 1000 * 1.948717
                          ≈ 1948.717

So, the company will produce approximately 1949 units on the seventh day.