Animist Designers has generated sales of $625,000 for the current year. If it can increase its sales at a rate of 12 percent every year, how long will it take for its sales to triple? (Round off to the nearest year.)
A) 8 years
B) 7 years
C) 10 years
D) 9 years

Question

Quizplus · Accepted Answer

To calculate the number of years it will take for sales to triple, we need to find out when sales reach three times the current sales.

Let X be the number of years needed.

625,000 * (1 + 12%)^x = 3 * 625,000

(1 + 12%)^x = 3

Using logarithms, we can solve for x:

x = log base 1.12 of 3

x = 9.14

Rounding off to the nearest year gives us 10 years, which is answer choice C.

Animist Designers Has Generated Sales of $625,000 for the Current