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

Name: Last year Tempe Corporation's sales were $525 million. If sales grow at 7.5% per year, how large (in millions) will they be 8 years later?
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Question

Quizplus · Accepted Answer

To find the future sales, use the formula for compound growth: Future Value = Present Value * (1 + growth rate)^number of years. Here, Future Value = $525 million * (1 + 0.075)^8 = $936.33 million.

Last Year Tempe Corporation's Sales Were $525 Million