Referencing Reids Rides Part I. It has been three years and Reids business has done very well. Sales have increased to 795 bikes. Expenses have been maintained at a 5% increase and cost of goods sold have also remained steady at a 3% increase. (Increases were compounded over the past three years. Rent did not change. Interest on the loan of $55,000 for 5 years is 6.5%). How do I computer the 5% compounded increase? For example phone and internet was @255 and licenses were $795?