Your forecast shows $500,000 annually in sales for each of the next 3 years.If your second and third year predictions have failed to incorporate the 3% expected annual inflation,how far off in total dollar sales is your 3-year forecast?
A) $45,450
B) $60,900
C) $52,550
D) $76,250

Question

Quizplus · Accepted Answer

Difference = $500,000 + ($500,000 × 1.03) + ($500,000 × 1.03²) − ($500,000 × 3) = $45,450

Your Forecast Shows $500,000 Annually in Sales for Each of the Next