Question

1. Annual sales for a fast food restaurant are $650.000 and are increasing at a rate of 4% per year.

Use an exponential function to find the annual sales after 7 years.
Help pls

Answer 1

The annual sales after 7 years is $ 855.3556

Solution:

The growth function is given as:

`y = a(1+r)^t`

Where,

y is the future value

a is the initial value

r is the growth rate

t is the number of years

From given,

a = 650

t = 7

`r = 4 \% = (4)/(100) = 0.04`

Therefore,

`y = 650(1 + 0.04)^7\\\\y = 650(1.04)^7\\\\y = 650 * 1.315931\\\\y = 855.3556`

Thus the annual sales after 7 years is $ 855.3556