Cochrane Associate's net sales last year were $525 million. If sales grow at 7.5% per year, how large (in millions) will they be 8 years later? a. $845.03b. $889.51c. $936.33d. $983.14e. $1,032.30

Question

Business

Terrance Hansen

22 July, 17:27

Cochrane Associate's net sales last year were $525 million. If sales grow at 7.5% per year, how large (in millions) will they be 8 years later? a. $845.03b. $889.51c. $936.33d. $983.14e. $1,032.30

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Answers (1)

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Colby Krueger · Answer 1

The correct answer is C.

Explanation:

Giving the following information:

Cochrane Associate's net sales last year were $525 million. If sales grow at 7.5% per year, how large (in millions) will they be 8 years later?

We need to use the following formula:

FV = PV * (1+i) ^n

FV = 525 * (1+0.075) ^8

FV = $936.33