a certain company reported selling 5,000 toys during the month of january and expects sales to grow at a…

a certain company reported selling 5,000 toys during the month of january and expects sales to grow at a rate of 7.5% per month until the end of that year. how many toys should the company expect to sell by the end of june of that year?\n30,158\n36,220\n43,937\n64,500

a certain company reported selling 5,000 toys during the month of january and expects sales to grow at a rate of 7.5% per month until the end of that year. how many toys should the company expect to sell by the end of june of that year?\n30,158\n36,220\n43,937\n64,500

Answer

Explanation:

Step1: Identify the formula for compound - growth

The formula for compound - growth is $A = P(1 + r)^n$, where $P$ is the initial amount, $r$ is the growth rate per period, and $n$ is the number of periods. Here, $P = 5000$, $r=0.075$, and we are calculating from January to June, so $n = 5$.

Step2: Substitute the values into the formula

$A=5000\times(1 + 0.075)^5$. First, calculate $(1 + 0.075)=1.075$. Then, $(1.075)^5=1.075\times1.075\times1.075\times1.075\times1.075\approx1.4375$.

Step3: Calculate the final amount

$A = 5000\times1.4375=7187.5\times1.075\approx 43937$.

Answer:

43,937