Using the formula for calculating future value with a constant growth rate:
FV = PV * (1 + r)^n
Where:
FV = future value
PV = present value (initial production in the first year)
r = growth rate (5% or 0.05)
n = number of years
For the first 4 years, we calculate the total production:
Year 1: 40,000 bushels
Year 2: 40,000 * (1 + 0.05) = 42,000 bushels
Year 3: 42,000 * (1 + 0.05) = 44,100 bushels
Year 4: 44,100 * (1 + 0.05) = 46,305 bushels
Adding all the productions together:
40,000 + 42,000 + 44,100 + 46,305 = 172,405 bushels
Therefore, the total bushels of corn she produced in her first 4 years of farming is 172,405 bushels. The closest answer choice is:
172,405 bushels
A corn farmer produces 40,000 bushels of corn in her first year of farming. Due to improved farming techniques, she increases the production by 5% each year. How many total bushels of corn did she produce in her first 4 years of farming? Round your answer to the nearest whole number.(1 point) Responses 148,395 bushels 148,395 bushels 221,025 bushels 221,025 bushels 161,204 bushels 161,204 bushels 172,405 bushels
1 answer