My recent marketing idea, the Miracle Algae Growing Kit, has been remarkably successful, with monthly sales growing by 5% every 6 months over the past 3 years. Assuming that I sold 450 kits the first month, what is the present rate of sales Round your answer to the nearest whole number. ?
A)603 kits per month
B) 524 kits per month
C) 485 kits per month
D) 486 kits per month
E) 522 kits per month

Question

My recent marketing idea, the Miracle Algae Growing Kit, has been remarkably successful, with monthly sales growing by 5% every 6 months over the past 3 years. Assuming that I sold 450 kits the first month, what is the present rate of sales  Round your answer to the nearest whole number. ?
A)603 kits per month
B) 524 kits per month
C) 485 kits per month
D) 486 kits per month
E) 522 kits per month

Quizplus · Accepted Answer

The sales growth can be calculated using the formula for compound interest, $P = P_0(1 + r)^n$, where $P$ is the final amount, $P_0$ is the initial amount, $r$ is the rate of growth per period, and $n$ is the number of periods. Here, $P_0 = 450$ kits, $r = 0.05$ (5% growth every 6 months), and $n = 6$ (since there are 6 periods of 6 months in 3 years). Plugging these values into the formula gives $P = 450(1 + 0.05)^6$, which calculates to approximately 603 kits per month.

My Recent Marketing Idea, the Miracle Algae Growing Kit, Has