The number of customers increased by 10% annually:
5,000, 5,500, 6,050, 6,655, and 7,320.
What is the estimate for the seventh year?
Show answer & explanation
Correct answer: C
Explanation
Annual Growth Rate = 10%
Series: 5000, 5500, 6050, 6655, 7320
Sixth Year = 7320 × 1.1 = 8052
Seventh Year = 8052 × 1.1 = 8857.2 = 8857 (approx.)