Question

7.

Answer 1

9514 1404 393

Answer:

• 246 products in year 5
• 2017 products over 5 years

Step-by-step explanation:

The n-th term of the geometric series is ...

  an = a1(r^(n-1))

for first term a1 and common ratio r. The common ratio here is the growth factor: 1 -20% = 0.8. This means the 5th term (5th year sales) will be ...

  a5 = 600(0.8^(5-1)) ≈ 246 . . . . . products sold in year 5

The sum is given by ...

  sn = a1(1 -r^n)/(1 -r) = 600(1 -0.8^5)/(1-0.8) = 2017

The company will have sold about 2017 products over 5 years.