Problema Solution
Fred North owns Redlands Farms, a successful strawberry farm. The strawberry plants increase at a compound rate of 12% each year. Each year Fred brings new land under cultivation for the new strawberry plants. If the farm has 50 acres of strawberry plants today, how many acres of strawberry plants will the farm have in 8 years? Round to the nearest whole acre.
Answer provided by our tutors
Intial plant=50 acres
Rate=0.12
Number of years=8
Strawberry plants after 8 years= 50(1+0.12)^8
= 50(1.12)^8
=50(2.48)
=124 acres.