You have been asked to forecast sales for the coming year. Being convinced that the compound average growth rate is the best way to forecast growth, you collect data for the prior three years as listed below. Using the data compute the compound growth rate for each of the years and then forecast next year's sales by using the two-year average growth rate (round off the growth rate to 2 decimal places).
Year _____________________Sales___
2012 ........................ $1,200,000
2013 ........................ $1,750,000
2014 ........................ $2,100,000
2015 ........................ ?