Question
In: Finance
Blossom Corp had sales of $350,000 in 2017. If management expects its sales to be $476,450...
Blossom Corp had sales of $350,000 in 2017. If management expects its sales to be $476,450 in 6 years, what is the rate at which the company’s sales are expected to grow? (If you solve this problem with algebra round intermediate calculations to 4 decimal places, in all cases round your final answer to 2 decimal places, e.g. 8.72%.)
| Growth rate |
Solutions
Expert Solution
Given,
Present value = $350000
Future value = $476450
Number of years (n) = 6 years
Solution :-
Growth rate = (future value/present value)1/n - 1
= ($476450/$350000)1/6 - 1
= (1.3613)1/6 - 1
= 1.0528 - 1 = 0.0528 or 5.28%
jeff jeffy answered 2 years agoRelated Solutions
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