Question

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

Answer 1

Around $855,355.66

Explanation:

In these type of problems, you'd use the following equation

`Initial Value * (percentage)^(x)`

Since the revenue's increasing by 4% every year, you'd plug 104/100 in the percentage box. X is the ammount of times the percentage is applied, so it would be 7, since we're finding the sales after 7 years. Finally, 650000 goes into the initial value and yeah. After calculating, you'll get around $855,355.66