Jose's history test consists of short answer problems and essay problems. It takes 2 minutes to answer the short answer problems and 4 minutes to answer the essay
problems. Jose has no more than 40 minutes for the test and he may choose no more
than 12 problems to answer.

$ 1,965,334

Step-by-step explanation:

Annual sales of company in 1999 = $ 1,200,000

Geometric mean growth rate = 10.37 % = 0.1037

In order to forecast we have to use the concept of Geometric sequence. The annual sales of company in 1999 constitute the first term of the sequence, so:

The growth rate is 10.37% more, this means compared to previous year the growth factor will be

r =1 + 0.1037 = 1.1037

We have to forecast the sales in 2004 which will be the 6th term of the sequence with 1999 being the first term. The general formula for n-th term of the sequence is given as:

So, for 6th term or the year 2004, the forecast will be:

Thus, the forecasted sales for 2004 are $ 1,965,334