Perrie invests £25000 for 3 years in a saving account. She gets 2.7% per annum compound interest. Calculate the total amount of
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12226 stores will be there in 2016
<em><u>Solution:</u></em>
<em><u>The growth function is given as:</u></em>
Where,
y is the future value
a is the initial value
r is the growth rate
t is the number of years
From given,
In 2000, a company had 1147 stores nationwide
By 2002, this total had grown to 1542
Therefore,
y = 1542
a = 1147
t = 2000 to 2002 = 2 years
r = ?
<em><u>Substituting we get,</u></em>
Taking square root of both sides
<em><u>If the number of stores continues to grow exponentially at the same rate, how many stores will there be in 2016?</u></em>
Therefore,
y = ?
a = 1147
r = 0.1594
t = 2000 to 2016 = 16 years
<em><u>Substituting we get,</u></em>
Thus 12226 stores will be there in 2016