Francisco L. answered 12/31/19
Finance, Accounting, Management and Investments tutor (Msc, MBA, CFA)
Hi,
This is an easy one!
Every week we are selling 6% less than the previous one. This is the same as selling 94% of the previous week.
Let´s say that n is the number of weeks.
Sales:
week 0: 13,400
Week 1: 13,400 x (1-6%) = 13,400 x 0.94
Week 2: 13,400 x 0.94 x 0.94 = 13,400 x 0.94^2
.....
Week n: 13.400 x 0.94^n
What is n so that 13,400 x 0.94^n = 2,000?
n= 30.67 or approximately 31 weeks.
Let me know if it is clear.
Thanks
Francisco