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The Bosco Company has sales of $979,000 and is losing sales and a rate of 2.5% per month. If this decline continues, what will the company’s sales be in three years? Show work please!

User Flops
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1 Answer

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Answer: $97,900

Explanation:

Company sales = $979,000

Monthly % of decline = 2.5 %

Amount loose monthly will be 2.5% of $979,000

= 2.5/100 x 979,000

= $24,475

since the decline is on monthly basis , and there are 12 months in a year therefore, the 3 years = 12 x 3

= 36 months,

Now, what the company looses in three years to come will be

= $24, 475 x 36

= $881, 100

Therefore , the company's sales in the three years will then be

= $979,000 - $881,100

= $97,900

.

User Jimmy Ilenloa
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