Question

Sales of a new tablet grow by 10% every month. Sales for this month are at 5 thousand. Write an equation to represent this situation and then approximate the sales 6 months from now.

Answer 1

We start with the sale at $5,000. The growth is: p = 10% = 0.1; r = 1 + 0.1 = 1.1
The equation is:
f ( t ) = 5,000 * ( 1.1 )^t
where t it the time in months.
f ( 6 ) = 5,000 * ( 1.1 )^6 =
= 5,000 * 1.77156 = $8,857.80
Answer: The sale 6 months from now will be $8,857.80.