Answered

At Westonci.ca, we make it easy for you to get the answers you need from a community of knowledgeable individuals. Experience the ease of finding quick and accurate answers to your questions from professionals on our platform. Join our Q&A platform to connect with experts dedicated to providing accurate answers to your questions in various fields.

In 2003, the annual sales at a company are $372,000. If sales are increasing at a rate
of 5% per year, in what year will the company's sales reach $1,000,000?

Sagot :

Answer:

20 years

Step-by-step explanation:

We start by writing an exponential equation;

FV = PV( 1 + r)^t

FV is the future value = 1,000,000

PV is present value = 372,000

r is rate = 5% = 5/100 = 0.05

t is time which we are looking for

1,000,000 = 372,000(1 + 0.05)^t

1.05^t = 1,000,000/372,000

1.05^t = 2.688

t ln 1.05 = ln 2.688

t = ln 2.688/ln 1.05

t = 20 years

Visit us again for up-to-date and reliable answers. We're always ready to assist you with your informational needs. Thank you for your visit. We're dedicated to helping you find the information you need, whenever you need it. Westonci.ca is here to provide the answers you seek. Return often for more expert solutions.