Netbook Ltd reported earnings of $2.1 million last year. The management of the company is certain that the sales will grow at a steady rate of 7 per cent a year for as far as they can tell. The company reports profit that represents 12 percent of sales. Profit for in current year is $3,759,000. The management would like to buy a new fleet of trucks but can only do so once the profit reaches $7,770,000 in the future. At the end of what year will Netbook Ltd be able to buy the new fleet of trucks (round your answer to one digit no decimal place) and what will profit be that year?

a.

11 years and profit $530,422.69

b.

11 years and profit $581,715.40

c.

16 years and profit $583,311.30

d.

16 years and profit $724,852.76

e.

10 years and profit $867,432.49