Question

A company with $60,000 in sales last year had $69,000 in sales this year. Assuming the company's sales continue to grow at the same rate each year, what will the the annual sales be two years from now

Answer 1

Subtract 69000 from 60000. Answer becomes 9000. So you add 9000 to 69000 2 times. Your answer becomes 87000.

Answer 2

$91252.5

Explanation:

We need to determine the rate at which the sales grow. We can do this by taking this years sales of $69000 by the previous years sales $60000:

`69000/60000=1.15`

The sales increase 1.15 times each year. For two more years:

`=69000\cdot{1.15}=79350`

`=79350\cdot{1.15}=91252.5`

The annual sales will be $91252.5 after two years.