Question

Annual sales for a fast food restaurant are 650000 and are increasing at a rate of 4% per year. Use an exponential function to find the annual sales after 5 years. What is the equation

Answer 1

A=P(1+r)^2
Principal as 650000
Rate = 4% or 0.04%
Time = 5 years
We are adding because as it is exponentially growth

650000(1+0.04)^5
= 790824.39