A factory increases the production of cars annually by 5%. If presently it manufactures 610, 000 cars per year, how many cars will it manufacture per year after 3 years
To calculate the number of cars the factory will manufacture per year after 3 years, we need to compound the annual 5% increase over the course of those 3 years.
Step 1: Start with the current production of 610,000 cars per year.
Step 2: Calculate the increase after the first year by multiplying the current production by 1 + the percentage increase (in decimal form).
610,000 * (1 + 0.05) = 610,000 * 1.05 = 640,500
After the first year, the factory will manufacture approximately 640,500 cars per year.
Step 3: Take the result from Step 2 and repeat the calculation for the second year.
640,500 * (1 + 0.05) = 640,500 * 1.05 = 672,525
After the second year, the factory will manufacture approximately 672,525 cars per year.
Step 4: Repeat the calculation for the third year.
672,525 * (1 + 0.05) = 672,525 * 1.05 = 706,151.25
After the third year, the factory will manufacture approximately 706,151 cars per year.
Therefore, after 3 years, the factory will manufacture approximately 706,151 cars per year.