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Irina-Kira [14]
3 years ago
5

A new CEO promises to increase company sales by 7% per year from its current level of $5,435,678 to a target level of $8 million

. How long would it take for the new CEO to reach this goal?
Business
1 answer:
Sedaia [141]3 years ago
7 0

Answer:

It will take 5 years and 259 days.

Explanation:

Giving the following information:

A new CEO promises to increase company sales by 7% per year from its current level of $5,435,678 to a target level of $8 million.

We need to use the following variation of the final value formula:

FV= PV*(1+i)^n

Isolating n:

n=[ln(FV/PV)]/ln(1+r)

PV= 5,435,678

FV= 8,000,000

i= 0.07

n= ln(8,000,000/5,435,678) / ln(1.07)

n= 5.71

<u>To be more accurate:</u>

0.71*365= 259

It will take 5 years and 259 days.

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For the U.S. soft drink market, of the 300 million people in the U.S., 80% of the population is the maximum number of consuming
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