Growth Rate: Vidmar Agencies Is a Fast-Growing Advertising Agency

Multiple Choice

Growth rate: Vidmar Agencies is a fast-growing advertising agency. Currently, their sales are at $700,000. They expect their sales to grow at an annual rate of 35 percent in the next two years, followed by an annual rate of 25 percent in years 3 through 7. Finally, their growth rate would slow down to 10 percent in years 8-10. What will be their sales as of year 10? (Round to the nearest dollar.)

A) $1,698,023
B) $2,843,323
C) $3,893,280
D) $5,181,956