SOLUTION: Annual sales for a company are $125,000 and are increasing at a rate of 8% per year. Use an exponential function to find the annual sales after 5 years. Round to the nearest cent.

Question 1181256: Annual sales for a company are $125,000 and are increasing at a rate of 8% per year. Use an exponential function to find the annual sales after 5 years. Round to the nearest cent.
Answer by ikleyn(52788) (Show Source): You can put this solution on YOUR website!
.


The formula is


    annual sales on the year after n years =  = .


Using it for n= 5, you get


    annual sales on the year after 5 years (actually, on the 6-th year) =  = 183666  dollars.    ANSWER

Solved.

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