Question

Annual sales for a company are $149,000 and are increasing at a rate of 6% per year; 7 years

Answer 1

$149 compounded on a Yearly basis over the course of 7 years at a 6% interest rate would be worth:

$224

Answer 2

This is exponential growth of the form:

F=Ir^t, F=final amount, I=initial amount, r=rate, t=time...in this case:

F=149000(1.06^t) so

F(7)=149000(1.06^7)

F(7)=$224040.91 (to the nearest cent)