Freeda estimates that sales in her Bed & Breakfast will grow at 6% compounded annually. If
current sales are $75,000, what will they be in five years?

Please help with a step by step, thank you!!

in five years time, the sales would be $100367

Step-by-step explanation:

We would apply the formula for determining compound interest which is expressed as

A = P(1+r/n)^nt

Where

A = total sales at the end of t years

r represents the growth rate.

n represents the periodic interval at which it was compounded.

P represents the current sales.

t represents the time in years

From the information given,

P = 75000

r = 6% = 6/100 = 0.06

n = 11 because it was compounded once in a year.

t = 5 years

Therefore,

A = 75000(1+0.06/1)^1 × 5

A = 75000(1+0.06)^5

A = 75000(1.06)^5

A = $100367

the mean and mad

step-by-step explanation: