Question

Annual sales for a company are $125,000 and are increasing at a rate of 8% per year. Use an exponential function to find the annual sales after 5 years. Round to the nearest cent.

Answer 1

Answer:

sales after 5 years is $183666

Step-by-step explanation:

exponential function standard form:

a=P(1+r)^t

where p=principal(starting amount)(125,000)

r=rate of change(0.08)

t=time(5)

so

a=125,000(1+0.08)^5

a=125,000(1.08)^5

a=125,000(1.46)

a=183666