At the independent record company where Chase works, the vinyl format has been experiencing a resurgence in popularity. Record sales are increasing by 6% each year. If 260,090 records were sold this year, what will annual sales be in 4 years?
If necessary, round your answer to the nearest whole number.
To find the annual sales in 4 years, we need to calculate the future value of the current sales after 4 years.
Let P be the current sales, which is 260,090.
Let r be the annual growth rate, which is 6%.
After 4 years, the annual sales will be P * (1 + r/100)^4.
Substituting in the given values, P = 260,090 and r = 6, the formula becomes:
Annual sales in 4 years = 260,090 * (1 + 6/100)^4.
Calculating this expression, we find:
Annual sales in 4 years ≈ 260,090 * (1.06)^4 ≈ 260,090 * 1.26248 ≈ 328,910.
Therefore, annual sales in 4 years will be about 328,910.