Fred's Hardware and Hobby House expects its sales to increase at a constant rate of 7 percent per year over the next three years. Current sales are $100,000. Complete the following table by forecasting sales for each of the next three years. Year Forecasted Sales (Dollars) 1 $107,000 2 $114,490 3 $122,504 If sales in 2003 were $60,000 and they grew to $100,000 by 2007 (a four-year period), the actual annual compound growth rate was: 10.76% 13.62% 18.56%
Fred's Hardware and Hobby House expects its sales to increase at a constant rate of 7 percent per year over the next three years. Current sales are $100,000. Complete the following table by forecasting sales for each of the next three years. Year Forecasted Sales (Dollars) 1 $107,000 2 $114,490 3 $122,504 If sales in 2003 were $60,000 and they grew to $100,000 by 2007 (a four-year period), the actual annual compound growth rate was: 10.76% 13.62% 18.56%
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Fred's Hardware and Hobby House expects its sales to increase at a constant rate of 7 percent per year over the next three years. Current sales are $100,000.
Complete the following table by forecasting sales for each of the next three years.
|
Year
|
Forecasted Sales
|
|---|---|
|
(Dollars)
|
|
| 1 | $107,000 |
| 2 | $114,490 |
| 3 | $122,504 |
If sales in 2003 were $60,000 and they grew to $100,000 by 2007 (a four-year period), the actual annual compound growth rate was:
10.76%
13.62%
18.56%
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