Bovic Inc. is a growing company with sales of $1.25 million this year. The company expects to grow at an annual rate of 25 percent for the next three years, followed by 20 percent per year for the next two years. What will be Bovic's sales at the end of five years? (Round to the nearest percent.)

Question

Quizplus · Accepted Answer

Bovic's sales will be $3,515,625 at the end of five years. This is calculated by multiplying the current sales of $1.25 million by 1.25 for the first three years, and then by 1.2 for the next two years.

Bovic Inc Is a Growing Company with Sales of $1