In its 2017 annual report, liberty company reported sales of $1,200 million. if you anticipate that sales will grow by 4% each year for the foreseeable future, what will 2021forecasted sales be?

a.$1,403.8 million
b.$1,248.0 million
c.$1,349.8 million
d.$1,179.7 million
e. none of the above

A.$1,403.8 million

Explanation:

The computation of the 2021 forecasts sales would be

Sales for 2017 = $1,200 million

Sales for 2018 would be

= $1,200 + $1,200 × 4%

= $1,200 + 48

= $1,248 million

Sales for 2019 would be

= $1,248 + $1,248 × 4%

= $1,248 + 49.92

= 1,297.92 million

Sales for 2020 would be

= $1,297.92 + $1,297.92 × 4%

= $1,297.92 + $51.9168

= $1,349.8368 million

Sales for 2021 would be

= $1,349.8368 + $1,349.8368 × 4%

= $1,349.8368 + 53.99344

= 1,403.83 million

answerblank(1); fixed interval; blank(2) fixed ratio;