Finite Math and Applied Calculus (6th Edition)

Published by Brooks Cole
ISBN 10: 1133607705
ISBN 13: 978-1-13360-770-0

Chapter 2 - Section 2.2 - Compound Interest - Exercises - Page 143: 36

Answer

$179$

Work Step by Step

Our sales, growing every 6 months, can be considered as an investment. We know that the future value of it can be calculated as: $FV=PV\times (1+r)^{t}$ Here, the present value, the number of sold kits in the first month is $100$. The future value is number of sold kits this month is the question. The compound rate is $r=6\%$ The number of 6-months periods is $5\times 2$ , therefore $t=10$ Therefore the future value is: $FV=PV\times (1+r)^{t}=100\times (1.06)^{10}\approx 179$
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