Question

"$12 million per year. grow 10% compounded annually over the next 5 years. What will demand be in 5 years?"

Answer 1

$12,936,120

Step-by-step explanation:

The formula for calculating compound interest

=FV = PV × (1+r)n

Fv = future value

PV present value

r interest rate =10 %

t =time = 5 years

Future value= 12million x(1+10/100)5

=12,000,000 x (1+0.1)5

=12,000,000x1.61051

= $12,936,120