Question

A local Dunkin’ Donuts shop reported that its sales have increased exactly 14% per year for the last 2 years. This year’s sales were $82,269. What were Dunkin' Donuts' sales 2 years ago? (Round each year’s sales to the nearest dollar.)

Answer 1

Dunkin' Donuts' sales 2 years ago were approximately $63,316.

Step-by-step explanation:

To find Dunkin' Donuts' sales 2 years ago, we need to calculate the sales with the given growth rate for each year. Let's assume that the sales 2 years ago were X dollars. The sales last year would be X + (14% of X) = X + 0.14X = 1.14X dollars. And this year's sales would be 1.14X + (14% of 1.14X) = 1.14X + 0.1596X = 1.2996X dollars.

We know that this year's sales were $82,269. So, we can set up the following equation: 1.2996X = 82,269. Solving for X, we find that X ≈ $63,316. Therefore, Dunkin' Donuts' sales 2 years ago were approximately $63,316.