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You have a current end of the year inventory valued at $126,543. You calculate that your inventory will increase in value by 2% per year for the next three years. What is your anticipated inventory value at the end of the three years?

User Munissor
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2 Answers

4 votes

Answer: $134,288

Explanation:

User Grigoriy
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2 votes

Answer:

$134,288.44

Explanation:

The initial value of the inventory is $126,543 and it will increase by 2% (0.02) each year. It means the first year it will have a value of

$126,543*(1+0.02)=$129,073.86

Next year, it will increase by 2% again, and the final value will be

$129,073.86*1.02=$131,655.3372

The trend will repeat the last year and the final anticipated inventory value is

131,655.3372*1.02=$134,288.44

The anticipated inventory value at the end of the three years is $134,288.44

User David Dury
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