Answer: in five years time, the sales would be $100367
Step-by-step explanation:
We would apply the formula for determining compound interest which is expressed as
A = P(1+r/n)^nt
Where
A = total sales at the end of t years
r represents the growth rate.
n represents the periodic interval at which it was compounded.
P represents the current sales.
t represents the time in years
From the information given,
P = 75000
r = 6% = 6/100 = 0.06
n = 11 because it was compounded once in a year.
t = 5 years
Therefore,
A = 75000(1+0.06/1)^1 × 5
A = 75000(1+0.06)^5
A = 75000(1.06)^5
A = $100367
