Question

A sales report shows that 3300 gas grills were purchased from a chain of hardware stores last year. The store expects grill sales to increase 6% each year. About how many grills does the store expect to sell in Year 6? Round to the nearest whole number. Use an equation, where t is the number of years elapsed, to justify your answer.

Answer 1

Answer: the store expects to sell about 4681 grills in year 6

Explanation:

The store expects grill sales to increase 6% each year. This is an exponential growth. The formula for determining exponential growth is expressed as

A = P(1 + r/n)^nt

Where

A represents the total amount after t years.

P represents the initial amount

r represents the growth rate in percentage

n represents the number of times that the growth increased.

t represents number of years.

From the information given,

P = 3300

r = 6% = 6/100 = 0.06

t = 6 years

n = 1 because the increase is recorded yearly.

Therefore,

A = 3300(1 + 0.06/1)^1 × 6

A = 3300(1.06)^6

A = 4681.11

Approximately 4681 grills