Question

Suppose a company has sales of $7,911,374.28. In the next year, the company experiences a 13% sales growth. What are the sales for the next year? (report your answer to 2 decimal places)

Answer 1

To find the sales for next year after a 13% growth, multiply the current sales ($7,911,374.28) by 0.13 to find the growth amount ($1,028,478.66), and then add it to the original sales to find next year's sales, which are $8,939,852.94.

Step-by-step explanation:

To calculate the sales for the next year after a 13% sales growth, first convert the percentage growth to a decimal by dividing the percentage by 100. In this case, 13% becomes 0.13. Then, multiply the original sales amount, which is $7,911,374.28, by the decimal growth rate.

The calculation is as follows:

Sales growth amount = Original sales × Growth rate

Sales growth amount = $7,911,374.28 × 0.13 = $1,028,478.66

Now, add this growth amount to the original sales to get the total sales for the next year:

Next year's sales = Original sales + Sales growth amount

Next year's sales = $7,911,374.28 + $1,028,478.66 = $8,939,852.94

Therefore, the sales for the next year, calculated to two decimal places, are $8,939,852.94.