The value after 7 years is $ 855355.65
Solution:
Given that, Annual sales for a fast food restaurant are 650000 and are increasing at a rate of 4% per year
To find: exponential function to find the annual sales after 7 years
The exponential growth function is given as:
[tex]y = a(1+r)^t[/tex]
Where,
"a" is the initial amount
"y" is the future value
"r" is the rate of interest in decimal
"t" is the number of years
Here in this given question,
a = 650000
t = 7 years
[tex]r = 4 \% = \frac{4}{100} = 0.04[/tex]
Substituting the values in given formula,
[tex]y = 650000(1+0.04)^7\\\\y = 650000(1.04)^7\\\\y = 650000 \times 1.31593\\\\y = 855355.65[/tex]
Thus the value after 7 years is $ 855355.65
The annual sales after 7 years are 855,355.65
The standard expression for an exponential function is expressed as:
[tex]y = a(1+r)^t[/tex]
Given the following parameters
Substitute the given parameters into the formula:
[tex]y = a(1+r)^t\\ y=650000(1.04)^7\\ y =855,355.65[/tex]
Hence the annual sales after 7 years are 855,355.65
Learn more on exponential function here: https://brainly.com/question/12940982
