Your finance text book sold 53,000 copies in its first year. The publishing comp

Question

Your finance text book sold 53,000  copies in its first year. The publishing company expects the sales to grow at  a rate of 15.0   percent for the next three years, and by 7.0  percent in the fourth year. Calculate the total number of copies that the  publisher expects to sell in year 3 and 4. (If  you solve this problem with algebra round intermediate calculations to 6  decimal places, in all cases round your final answers to the nearest whole  number.)

Number of copies sold after 3 years :

Number of copies sold in the fourth year :

Explanation / Answer

Number of copies sold after 3 years = PV (1 + i ) n = 53,000 (1.15)^ 3 = 80,607 copies

Number of copies sold in the fourth year = PV (1 + i ) n = 92,016 (1.07) = 86,250 copies   

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