Question

A firm's 2019 sales were $112 million. If sales grows at 4% per year, how large will they be 7 yearslater? (Round to O decimal places)

Answer 1

7. Amount after 10 years,

Total increment = 8920 x 9/100 x 10 = 8028

Amount after 10 years = 8920 + 8028 = 16, 948 dollars

8. Amount after 7 years

Total increment = 112 million x 4/100 x 7 = 31.36 million

Amount after 7 years = 112 million + 31.36 million = 143. 36 million = 143 million.