Answer:
$39,851.25
Step-by-step explanation:
If the sales increase at a rate of 9% per year, this means it will be 109% of the previous year's value since 100% + 9% = 109%
109% in decimal form = 109/100 = 1.09
Therefore, the exponential function is:
[tex]y = 20000 \cdot 1.09^x[/tex], where [tex]x[/tex] is the number of years
So when [tex]x=8[/tex],
[tex]y = 20000 \cdot 1.09^8=39851.252...[/tex]
After 8 years, annual sales = $39,851.25
