Question

annual sales for a company are $149,999 and are increasing at a rate of 6% per year. write an exponential growth function to model this situation. then, find the annual sales after 7 years.

Answer 1

• S(t) = 149999(1.06)^t
• $225543

Explanation:

• Initial value is $149999
• Increase rate is 6% per year = 1.06 times

The model of the growth is:

• S(t) = 149999(1.06)^t, where S- amount of annual sales, t- time in years, 1.06- growth rate per year

Annual sales after 7 years:

• S(7) = 149999(1.06)^7 = $225543