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.
records
To find the annual sales in 4 years, we need to calculate the future value of 260,090 records after 4 years at a 6% annual growth rate.
Using the formula for compound interest,
Future Value = Present Value * (1 + Growth Rate/100)^Number of Years
Future Value = 260,090 * (1 + 6/100)^4
Future Value = 260,090 * (1.06)^4
Future Value ≈ 260,090 * 1.26248
Future Value ≈ 328,036.7354472
Rounding to the nearest whole number, the annual sales in 4 years will be 328,037 records.