Question

"$12 million per year. grow 10% compounded annually over the next 5 years. What will demand be in 5 years?"

Answer 1

Compound interest formula:

Amount = starting value x ( 1+ interest rate/compounds per year)^(compound per year x number of years)

Amount = 12,000,000 x (1+ 0.10/1)^(1x5)

Amount = 19,326,120.00