Growth Rate: Petry Company Is a Growing Company with Sales

Multiple Choice

Growth rate: Petry Company is a growing company with sales of $1.25 million this year. The company expects to grow at an annual rate of 25 percent for the next three years, followed by a growth of 20 percent per year for the next two years. What will be Petry's sales at the end of five years? (Round to the nearest percent.)

A) $2,160,000
B) $3,515,625
C) $1,875,000
D) $2,929,688