A new CEO promises to increase company sales by 7% per year from its current level of $5,435,678 to a target level of $8 million. How long would it take for the new CEO to reach this goal?

It will take 5 years and 259 days.

Explanation:

Giving the following information:

A new CEO promises to increase company sales by 7% per year from its current level of $5,435,678 to a target level of $8 million.

We need to use the following variation of the final value formula:

FV = PV * (1+i) ^n

Isolating n:

n=[ln (FV/PV) ]/ln (1+r)

PV = 5,435,678

FV = 8,000,000

i = 0.07

n = ln (8,000,000/5,435,678) / ln (1.07)

n = 5.71

To be more accurate:

0.71*365 = 259

It will take 5 years and 259 days.