cooling tools inc is currently producing 1087 of small refri

cooling tools inc is currently producing 1087 of small refriderators per month, but the companys CEO plans to increase the production at a rate of 9.85 % per month untill the firm is producing 6101 refridgerators per month. how many months will this take?

Solution

Computation of Months:

Required Production = Current Production * (1 + Rate)^Number of Months

6101 = 1087 * (1 + 0.0985)^Number of Months

(1.0985)^Number of Months = 6101 / 1087

(1.0985)^Number of Months = 5.612695

(1.0985)^Number of Months = (1.0985)^18.362

Number of Months = 18.362 Months or 18.36 Months or 18 Months