QUESTION 4 of 10: You estimate that your new business's revenue will grow at a compounded rate of months. If your third month's revenue is estimated at $5,000, what is your second month's revenue? (F
a) $2,945
b) $3,846
c) $4,012
d) $4,333

The correct option is b) $3,846.

Explanation:

Note: This question is not complete as the compounded rate is omitted. The complete question is therefore provided before answering the question as follows:

You estimate that your new business's revenue will grow at a compounded rate of 30% each month for the first 6 months. If your third month's revenue is estimated at $5,000, what is your second month's revenue? (Round to the nearest dollar.)

a) $2,945

b) $3,846

c) $4,012

d) $4,333

The explanation of the answer is now given as follows:

The second month's revenue can be calculated using the following formula:

a(1 + r) = b (1)

Where;

a = second month's revenue = ?

r = compounded growth rate = 30%, or 0.30

b = third month's revenue = $5,000

Substituting the values into equation (1) and solve for a, we have:

a(1 + 0.30) = $5,000

a = $5,000 / (1 + 0.30)

a = $5,000 / 1.30

a = $3,846.15384615385

Rounding to the nearest dollar, we have:

a = $3,846

Therefore, the correct option is b) $3,846.

answer; post closing trial balance;