Online retail sales stood at $22.7 billion for 2000. For the next 2 years, they grew by 32.4% and 27.6% per year, respectively. For the next 6 years, online retail sales are projected to grow at 30.2%, 19.7%, 24.3%, 13.6%, 17.2%, and 10.6% per year, respectively. What are the projected online sales for 2008? Round your answer to one decimal place.
A) $113.6 billion
B) $112.2 billion
C) $110.8 billion
D) $108.0 billion
E) $109.4 billion

Question

Online retail sales stood at $22.7 billion for 2000. For the next 2 years, they grew by 32.4% and 27.6% per year, respectively. For the next 6 years, online retail sales are projected to grow at 30.2%, 19.7%, 24.3%, 13.6%, 17.2%, and 10.6% per year, respectively. What are the projected online sales for 2008? Round your answer to one decimal place. ​
A) $113.6 billion
B) $112.2 billion
C) $110.8 billion
D) $108.0 billion
E) $109.4 billion

Quizplus · Accepted Answer

To find the projected online sales for 2008, we need to calculate the total growth over the period of the next 10 years.

First, we can calculate the online retail sales for 2001:

$22.7 billion * (1 + 0.324) = $30.0 billion

Then, we can calculate the online retail sales for 2002:

$30.0 billion * (1 + 0.276) = $38.1 billion

Now, we can calculate the online retail sales for each of the next 6 years:

- 2003: $38.1 billion * (1 + 0.302) = $49.9 billion
- 2004: $49.9 billion * (1 + 0.197) = $59.6 billion
- 2005: $59.6 billion * (1 + 0.243) = $74.0 billion
- 2006: $74.0 billion * (1 + 0.136) = $84.0 billion
- 2007: $84.0 billion * (1 + 0.172) = $98.0 billion
- 2008: $98.0 billion * (1 + 0.106) = $107.9 billion

We can round this answer to the nearest tenth to get $109.4 billion. Therefore, the answer is E, $109.4 billion.

Online Retail Sales Stood at $22