Question

The number of promotional displays suppliers ask you to put up in your store has been increased by a rate of 9% per year. This year there were 365 of these. If the trend doesn't change, what will the total number be in 4 years?

a. 478
b. 402
c. 542
d. 603

Answer 1

To find the total number of promotional displays in 4 years, we can use the compound interest formula and calculate the final amount. Substituting the values given in the question into the formula, we find that the total number will be approximately 478.

Step-by-step explanation:

To find the total number of promotional displays in 4 years, we need to calculate the compound interest. We can use the formula A = P(1 + r/n)nt, where:

• A is the final amount
• P is the initial amount
• r is the rate of increase per year (as a decimal)
• n is the number of times the interest is compounded per year
• t is the number of years

In this case:

• P = 365
• r = 9% = 0.09
• n = 1 (compounded annually)
• t = 4

Substituting these values into the formula, we get:

A = 365(1 + 0.09/1)1*4 ≈ 365(1.09)4 ≈ 478.03

Therefore, the total number of promotional displays in 4 years will be approximately 478.