Question

Sales of cases of bottled water are up 7% from last year. You sold 900 cases of bottled water last year. Based on current percentage demands trends, what would be the forecast before total sales of cases of bottled water in three years?

Answer 1

Answer:

A. 1180

Step-by-step explanation:

Given that last year 900 cases were sold, and this year they increased by 7% find the cases sold this year,

Increase 900 by 7%. This is equal to multiplying 900 by 107%

900*107/100 =963 cases

You can now increase the number of cases sold by 7% every year for 3 years.

In the first year, cases sold will be;

963*107/100 = 1030.41 cases

In the second year, cases sold will be;

1030.41*107/100 = 1102.10 cases

In the third year, cases sold will be;

1102.10*107/100 = 1179.14

This is approximately 1180 cases rounded to a whole number

Answer 2

We have been given that sales of cases of bottled water are up 7% from last year. You sold 900 cases of bottled water last year. We are asked to find the the forecast before total sales of cases of bottled water in three years.

We will use exponential growth function to solve our given problem.

An exponential growth function is in form $y=a\cdot (1+r)^x$, where

y = Final value,

a = Initial value,

r = Growth rate in decimal form,

x = Time.

$7\%=\frac{7}{100}=0.07$  

$y=900\cdot (1+0.07)^x$

$y=900\cdot (1.07)^x$          

Let us find bottles sold last year by substituting $x=1$ in our formula as:

$y=900\cdot (1.07)^1$

$y=963$

Now our initial value would be 963.

Now we will substitute $x=3$ to solve our given problem.

$y=963\cdot (1.07)^3$

$y=963\cdot 1.225043$    

$y=1179.716409$

Upon rounding to nearest whole number, we will get:

$y\approx 1180$

Therefore, the total sales of cases of bottled water in 3 years would be 1180 and option A is the correct choice.