Question

You have a current end of the year inventory valued at $126,543. You calculate that your inventory will increase in value by 2% per year for the next three years. What is your anticipated inventory value at the end of the three years?

Answer 1

Answer:

$134,288.44

Step-by-step explanation:

The initial value of the inventory is $126,543 and it will increase by 2% (0.02) each year. It means the first year it will have a value of

$126,543*(1+0.02)=$129,073.86

Next year, it will increase by 2% again, and the final value will be

$129,073.86*1.02=$131,655.3372

The trend will repeat the last year and the final anticipated inventory value is

131,655.3372*1.02=$134,288.44

The anticipated inventory value at the end of the three years is $134,288.44

Answer 2

Answer: $134,288

Step-by-step explanation: