If a store's sales are $55,000 a month and it had a constant increase of 2% in sales each month, how long... would it take for the monthly sales to increase to $85,000? If you can please provide the formula to this question with simple steps that is easily understandable, it would be appreciated.
2007-10-28 12:50:37 · 4 answers · asked by pizzandgrill 2 in Science & Mathematics ➔ Mathematics
Future Value = Present Value (1+rate)^n
so
85000 = 55000 (1+0.02)^n
85000/55000=1.02^n
take log for both sides of the equation
log(85000/55000)=n*log(1.02)
n=log(85000/55000)/log(1.02)
n = 22
2007-10-28 13:06:03 · answer #1 · answered by bustedtaillights 4 · 1⤊ 0⤋
55,000 times 1.02 power to X is = to 85000
1.02 power to x is = to 85,000/55,000
then you get about
1.02 power to x is = to 1.54545454...
Then the simplest way is to plug in
what X would make 1.02 to the power of X = to 1.545454..etc
2007-10-28 19:59:56 · answer #2 · answered by teodor d 2 · 0⤊ 0⤋
Take 55,000 x 1.02 = 55,110 = month 1
Tskr 55,110 x 1.02 = ......... = month 2
Continue on down till your get to $85,000
2007-10-28 20:03:01 · answer #3 · answered by Squat1 5 · 0⤊ 1⤋
85000 = 55000(1+.02)^t
85000/55000 = 1.02^t
ln (17/11) = t ln(1.02)
t = [ln(17/11)]/(ln(1.02)
t = 21.98 = 22 months
2007-10-28 20:06:08 · answer #4 · answered by ironduke8159 7 · 1⤊ 0⤋