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The unique glass company reported sales of 24 million in 1995. The sales increased by 15% each year for the next 10 years. Calculate the company's sales in the year 2003.

a. $132.3 million
b. $348.68 million
c. $56.25 million
d. $79.98 million

1 Answer

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Final answer:

To find the company's sales in 2003 after a 15% annual growth from 1995, we use the compound growth formula A = P(1 + r)^n. The calculation gives us approximately $70.46 million, which is not one of the provided options. The question may contain an error, or you should review the question details again.

Step-by-step explanation:

To calculate the company’s sales in the year 2003, we need to apply the formula for compound growth, which is A = P(1 + r)^n, where:

  • A is the amount of money accumulated after n years, including interest.
  • P is the principal amount (the initial amount of money).
  • r is the annual interest rate (decimal).
  • n is the number of years the money is invested for.

The principal amount here is the initial sales, which is $24 million. The annual growth rate is 15% or 0.15 in decimal form, and the number of years, n, from 1995 to 2003 is 8 years.

Using the formula, we get:

A = $24 million × (1 + 0.15)^8

A = $24 million × (1.15)^8

A = $24 million × 2.93731 (using a calculator)

A = $70.45544 million

Therefore, the company's sales in the year 2003 were approximately $70.46 million, which is not one of the options provided. If this is a real-life scenario, an error might have occurred during the question setup. If it's a fictional scenario for the sake of homework or a test, please review the possible answer choices and question details again.

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