Cooling Tools Inc is currently producing 1035 of small refri

Cooling Tools, Inc. is currently producing 1,035 of small refrigerators per month but the company’s CEO plans to increase production at a rate of 9.90 percent per month until the firm is producing 6,268 of refrigerators per month. How many months will this take? Round the answer to two decimal places.

Solution

Producing No. Of small referigerators per month = 1035

Increase production rate = 9.90% per month until the firm is producing =6268 of referigerators per month,

Now, to find the number of months =n, we get

6268 = 1035 (1+9.90%) ^ n

6268/1035=10.90%^ n

6.056038 =0.109^n

N=21 months