Question

The annual net sales for a huge soft drink company were 5.6 billion dollars in 2012 and sales were increasing at a continuous rate of 3.85% per year. Estimate, in billions of dollars, the annual net sales in 2016

Answer 1

Answer: 6.51 billion dollars

Explanation:

From the question, we are informed that the annual net sales for a huge soft drink company were 5.6 billion dollars in 2012 and that sales were increasing at a continuous rate of 3.85% per year.

The annual net sales in 2016 will be:

= 5.6 billion × (1 + 3.85%)^4

= 5.6 billion × (1 + 0.0385)^4

= 5.6 billion × (1.0385)^4

= 5.6 billion × 1.1631

= 6.51 billion dollars