Your finance text book sold 54,500 copies in its first year. The publishing comp
ID: 2755407 • Letter: Y
Question
Your finance text book sold 54,500 copies in its first year. The publishing company expects the sales to grow at a rate of 19.0 percent for the next three years, and by 6.0 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
Number of copies sold after 3 years
Number of copies sold in the fourth year
Explanation / Answer
There are 54,500 copies in the 1st year.
In each year it grows at 19% rate.
Therefore, in the 2nd year = 54,500 × 1.19 = 64,855
In the 3rd year = 64,855 × 1.19 = 77,177.45
Number of copies sold after 3 years = 1st year + 2nd year + 3rd year
= 54,500 + 64,855 + 77,177.45
= 196,532.45
= 196,532 (Rounded)
In the 4th year = 3rd year × (1 + percentage)
= 77,177.45 × 1.06
= 81,808.097
= 81,808 (Rounded)
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