Question

Cochrane Associate's net sales last year were $525 million. If sales grow at 7.5% per year, how large (in millions) will they be 8 years later?a. $845.03b. $889.51c. $936.33d. $983.14e. $1,032.30

Answer 1

Answer:

The correct answer is C.

Explanation:

Giving the following information:

Cochrane Associate's net sales last year were $525 million. If sales grow at 7.5% per year, how large (in millions) will they be 8 years later?

We need to use the following formula:

FV= PV*(1+i)^n

FV= 525*(1+0.075)^8

FV= $936.33