Question

Annual sales for a fast food restaurant are $650,000 and are increasing at a rate of 4℅ per year. what are the annual sales after 7 years?​

Answer 1

$855355.656503296, but we round to $855355.66

Explanation:

Set up an equation where f(x)=650000(1.04)^n. The 1.04 represents the growth because if it were just .04 we wouldn't be including the initial value and it would decay. The 650000 is the initial value, and we put 1.04 to the nth power because it represents the amount of years. To plug in seven years, simply do 650000(1.04)^7 in your calculator.