Question

Annual sales for a company are $125,000 and are increasing at a rate of 8% per year. Use an exponential function to find the annual sales after 5 years. Round to the nearest cent.

Answer 1

sales after 5 years is $183666

Step-by-step explanation:

exponential function standard form:

a=P(1+r)^t

where p=principal(starting amount)(125,000)

r=rate of change(0.08)

t=time(5)

so

a=125,000(1+0.08)^5

a=125,000(1.08)^5

a=125,000(1.46)

a=183666

Answer 2

To find the annual sales after 5 years, we can use the formula for compound interest: A = P(1 + r)^t. In this case, the initial amount is $125,000, the interest rate is 8% or 0.08, and the time period is 5 years. Therefore, the annual sales after 5 years will be approximately $183,662.50.

Step-by-step explanation:

To find the annual sales after 5 years, we can use the formula for compound interest: A = P(1 + r)^t, where A is the final amount, P is the initial amount, r is the interest rate, and t is the time period.

In this case, the initial amount is $125,000, the interest rate is 8% or 0.08, and the time period is 5 years. Plugging in these values, we get:

A = 125000(1 + 0.08)^5 = 125000(1.08)^5 = 125000(1.4693) = $183,662.50

Therefore, the annual sales after 5 years will be approximately $183,662.50.