MATH SOLVE

2 months ago

Q:
# Suppose that a company's annual sales were $1,200,000 in 1999. The annual growth rate of sales from 1999 to 2000 was 16 percent, from 2000 to 2001 it was β5 percent, and from 2001 to 2002 it was 22 percent.The geometric mean growth rate of sales over this three-year period is calculated as 10.37 percent. Use the geometric mean growth rate and determine the forecasted sales for 2004.

Accepted Solution

A:

Step-by-step explanation:A = P (1 + r)^tGiven that P = $1,200,000, r = 0.1037, and t = 5:A = $1,200,000 (1 + 0.1037)^5A = $1,965,334.41Round as needed.