Question

Last year Dania Corporation's sales were $525 million. If sales grow at 7.5% per year, how large (in millions) will they be 8 years later?

Answer 1

Answer:

$936.33 Million

Explanation:

Current sales = $525 millions

Growth rate = 7.5%

Number of years = 10 years

Sales after 8 year = Current sales x $(1+g)^{n}$

Sales after 8 year = $ 525 million x $(1+7.5/100)^{8}$

Sales after 8 year = $ 525 million x $(1+0.075)^{8}$

Sales after 8 year = $ 525 million x $(1.075)^{8}$

Sales after 8 year = $ 525 million x 1.783477826

Sales after 8 year = $ 936.33 million