Cooling Tools, Inc

Finance Feb 07, 2021

Cooling Tools, Inc. is currently producing 1,328 of small refrigerators per month but the company's CEO plans to increase production at a rate of 11.45 percent per month until the firm is producing 7,088 of refrigerators per month. How many months will this take?

Expert Solution

Computation of Number of Months:

Given,

Current production = 1,328

Future production = 7,088

Rate of growth = 11.45%

Future Production = Current Production*(1+Rate)^Number of Months

7,088 = 1,328 * (1 +11.45%)^Number of Months

(1 +11.45%)^Number of Months = 5.3373

Number of Months = 15.45 or 15 months

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