(Trend analysis)

The City of Endymion levies a tax of 5 percent on all retail sales throughout the city. Retail sales for the current year and the past 5 years are as follows

(rounded and in millions):

1OG9 Si EL 2000 15.4 2001 173 2002 20.8 2003 23.4 2004 (est.) Dies In 2005 a new retail complex will be opened that should attract shoppers from nearby cities. As a result, retail sales are expected to be 10 percent higher than if the complex had not been opened.
Required: Determine how much the city should budget for revenue from sales taxes in 2005.

Transcribed Image Text:

1999 $12.1 2000 15.4 2001 17.3 2002 20.8 2003 23.4 2004 (est.) 27.3