You have been asked to forecast sales for the coming year. Being convinced that the compound average growth rate is the best way to forecast growth, you collect data for the prior three years as listed below. Using the data compute the compound growth rate for each of the years and then forecast next year’s sales by using the two-year average growth rate (round off the growth rate to 2 decimal places).
Year ......... Sales
2007 ..... $1,200,000
2008 ..... $1,750,000
2009 ..... $2,100,000
2010 .......... ?