Answer:
The correct option is b) $3,846.
Step-by-step explanation:
Note: This question is not complete as the compounded rate is omitted. The complete question is therefore provided before answering the question as follows:
You estimate that your new business's revenue will grow at a compounded rate of 30% each month for the first 6 months. If your third month's revenue is estimated at $5,000, what is your second month's revenue? (Round to the nearest dollar.)
a) $2,945
b) $3,846
c) $4,012
d) $4,333
The explanation of the answer is now given as follows:
The second month's revenue can be calculated using the following formula:
a(1 + r) = b ......................... (1)
Where;
a = second month's revenue = ?
r = compounded growth rate = 30%, or 0.30
b = third month's revenue = $5,000
Substituting the values into equation (1) and solve for a, we have:
a(1 + 0.30) = $5,000
a = $5,000 / (1 + 0.30)
a = $5,000 / 1.30
a = $3,846.15384615385
Rounding to the nearest dollar, we have:
a = $3,846
Therefore, the correct option is b) $3,846.