QuestionJune 26, 2025

Acertain company reported selling 5,000 toys during the month of January and expects sales to grow at a rate of 7.5% per month until the end of that year. How many toys should the company expect to sell by the end of June of that year? 30,158 36,220 43,937 64,500

Acertain company reported selling 5,000 toys during the month of January and expects sales to grow at a rate of 7.5% per month until the end of that year. How many toys should the company expect to sell by the end of June of that year? 30,158 36,220 43,937 64,500
Acertain company reported selling 5,000 toys during the month of January and expects sales to grow at a rate of 7.5% per month until the end of that year. How many toys should the company expect to sell by the end of June of that year? 30,158 36,220 43,937 64,500

Solution
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Answer

7,178 Explanation 1. Identify the growth formula Use the compound growth formula: A = P(1 + r)^n, where P is the initial amount, r is the growth rate, and n is the number of periods. 2. Define variables P = 5000, r = 0.075, n = 5 (from January to June). 3. Calculate expected sales A = 5000(1 + 0.075)^5 = 5000(1.075)^5. 4. Compute the result Calculate 5000 \times 1.435629 = 7178.145. 5. Round to nearest whole number The company should expect to sell approximately 7,178 toys by the end of June.

Explanation

1. Identify the growth formula<br /> Use the compound growth formula: $A = P(1 + r)^n$, where $P$ is the initial amount, $r$ is the growth rate, and $n$ is the number of periods.<br /><br />2. Define variables<br /> $P = 5000$, $r = 0.075$, $n = 5$ (from January to June).<br /><br />3. Calculate expected sales<br /> $A = 5000(1 + 0.075)^5 = 5000(1.075)^5$.<br /><br />4. Compute the result<br /> Calculate $5000 \times 1.435629 = 7178.145$.<br /><br />5. Round to nearest whole number<br /> The company should expect to sell approximately 7,178 toys by the end of June.
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