Cooling Tools Inc is currently producing 868 of small refrig

Cooling Tools, Inc. is currently producing 868 of small refrigerators per month but the company\'s CEO plans to increase production at a rate of 10.56 percent per month until the firm is producing 5,130 of refrigerators per month. How many months will this take? Round the answer to two decimal places

Solution

Computation of Number of Months Required to Reach production goal of 5130 Refrigerators

Future Production Value = Present Production * (1 + Rate )^number of months

5130 = 868 * (1.1056)^number of months

5.9101 = (1.1056)^number of months

Number of Months Required = 17.70 Months