Annual sales for a clothing store are $270,000 and are increasing at a rate of 7% per year. Find out how much money is made in 3 years. Use the formula y=a(1+r)^t.

chemicars8

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2022-09-01

Annual sales for a clothing store are $270,000 and are increasing at a rate of 7% per year. Find out how much money is made in 3 years. Use the formula y = a ( 1 + r ) t .

Answer & Explanation

Trevon Hughes

Trevon Hughes

Beginner2022-09-02Added 9 answers

As Alex points out in the comment, a=$270,000, r=0.07, and t=3.Putting that into the formula y = a ( 1 + r ) t , we arrive at the following: y = a ( 1 + r ) t y = $ 270 , 000 ( 1 + 0.07 ) 3 y = $ 270 , 000 ( 1.07 ) 3 y = $ 270 , 000 1.225 y = $ 330 , 761.61

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