Question

Last year Rocco Corporation's sales were $225 million. If sales grow at 6% per year, how large (in millions) will they be 5 years later?

Answer 1

`$301,1` million

(`$301,100,755` as the accurate answer)

Explanation:

Use the formula for compound interest/growth:

`A = P(1+ r)^n" "(r` represents the rate as a decimal)

`225 * 1.06^n" "` (working in millions)

`n` = the number of years.

`225 * 1.06^5`