Question

Animist designers has generated sales of $625,000 for the current year. if it can grow the sales at a rate of 12 percent every year, how long will it take to triple the sales? (round off to the nearest year.)

Answer 1

I did a manual computation to find the number of years it would take to triple the current sales.

625,000 x 3 = 1,875,000

Year Sales
1 625,000.00
2 625,000 x 1.12 = 700,000.00
3 700,000 x 1.12 = 784,000.00
4 784,000 x 1.12 = 878,080.00
5 878,080 x 1.12 = 983,449.60
6 983,450 x 1.12 = 1,101,463.55
7 1,101,464 x 1.12 = 1,233,639.18
8 1,233,639 x 1.12 = 1,381,675.88
9 1,381,676 x 1.12 = 1,547,476.99
10 1,547,477 x 1.12 = 1,733,174.22
11 1,733,174 x 1.12 = 1,941,155.13

It would take 10 years for the sales to triple.