Answer:
The value of the annual sales in 3 years is $330,762
Step-by-step explanation:
In this question, we are to calculate the value of the annual sales in three years for a clothing store which increases at a rate of 7% per year
To calculate this , we shall need to make use of an exponential function which is defined as follows;
V =I(1 + r)^t
where V is the future value at 3 years
r is the rate of increase which is 7% or simply 7/100 = 0.07
t is the number of years which is 3
Plugging these values into the equation, we have;
V = 270,000( 1+ 0.07)^3
V = 270,000(1.07)^3
V = 330,761.6 which is $330,762 to the nearest whole dollars
