Annual sales for a clothing store are $270,000 and are increasing at a rate of 7% per year. Find out how much money is made in 3 years. Use the formula y=a(1+r)^t.
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1 Answer
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As Alex points out in the comment, $a=\$270,000$, $r=0.07$, and $t=3$.Putting that into the formula $y=a(1+r)^t$, we arrive at the following:
$$
y=a(1+r)^t\\
y=\$270,000(1+0.07)^3\\
y=\$270,000(1.07)^3\\
y=\$270,000*1.225\\
y=\$330,761.61
$$
