Question

Last year Submarine's sales were $25 million. If sales grow at 8% per year, how large (in millions) will they be 6 years later?

Answer 1

Answer:

The answer is $39.67 million

Explanation:

N(Number of years/Number of periods) = 6

I/Y(Yield-To-Maturity) = 8 percent

FV(Future value/Par value) =?

PV(present value or market value) = $25 milllion

Now to solve this, lets use a financial calculator (e.g Texas BA II plus)

N= 6; I/Y = 8%; PV = -25; CPT FV = 39.67

Therefore, in 6 years, the money will be $39.67 million.