Question

Online jewelry sales have increased steadily. In 2003 sales were approximately 2 billion dollars and in 2013 they were approximately 7.15 billion construct a model to predict online jewelery sales according to your model what should the online jewelry sales be in 2015

Answer 1

Answer:

Prediction model for Jewelry sales 7.15 billion = 2 billion {1+r%}¹⁰

Jewelry sales in 2015 = 8.343 billion dollars

Step-by-step explanation:

The compound interest expression is used to describe the increase in Jewelry sales

A = P{1+r%}ⁿ = 7.15billion = 2billion {1+r%}¹⁰

Where A= Jewelry sales in 2013

P Jewelry sales in 2010

r= annual rate increase

n= number of years

r is then calculated from 7.15billion = 2billion {1+r%}¹⁰

Therefore 3.575billion = {1+r%}¹⁰

¹⁰√3.575 × 10⁹ = 1+r%

9.022514830966 = 1+r%

r% =  8.022514830966%

Jewelry sales by 2015 = A = P{1+r%}ⁿ where n= 2

A = 7.15×10⁹{1+8.022514830966/100}² = 8.34370097596 × 10⁹

Therefore Jewelry sales in 2015 = 8.343 billion dollars