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(Related to Checkpoint 5.2) (Future value) A new finance book sold 12,000 copies following the first year of its release, and was expected to increase
(Related to Checkpoint 5.2) (Future value) A new finance book sold 12,000 copies following the first year of its release, and was expected to increase by 22 percent per year. What sales are expected during years two, three, and four? Graph this sales trend and explain how compound growth affects the shape of the sales trend. a. If the 12,000 copies of book sales following the first year of its release were expected to increase by 22 percent per year, what are the expected sales of the new finance book during year two? copies (Round to the nearest whole number.) b. If the 12,000 copies of book sales following the first year of its release were expected to increase by 22 percent per year, what are the expected sales of the new finance book during year three? copies (Round to the nearest whole number.) c. If the 12,000 copies of book sales following the first year of its release were expected to increase by 22 percent per year, what are the expected sales of the new finance book during year four? copies (Round to the nearest whole number.) d. The following graph shows the sales trend for years two, three, and four following the first year of its release. 23000 21000- 19000 Book Sales 17000 15000 13000 11000 Years How does compound growth affect the sales trend? (Select the best choice below.) OO O A. The sales trend is linear with the same increase in sales each year. B. The sales trend is nonlinear with decreasing sales due to the compound growth in the sales. OC. The sales trend is linear with decreasing sales due to the compound growth in the sales. OD. The sales trend is nonlinear with accelerating sales due to the compound growth in the sales
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