Problema Solution
Sales in January were $2,500 and continued to grow by 5% each month for six months. What were sales for the month of July?
Answer provided by our tutors
Sales in January: $2,500
Sales in February (after 1 month): 2500 + 0.05*2500 = 2500(1 + 0.05) = 2500*1.05
Sales in March (after 2 months): 2500*1.05 + 2500*1.05*0.05 = 2500*1.05^2
....
Sales in July (after 6 months): 2500*1.05^6 = $3,350.24
The sales for July were $3,350.24.