Question
Your annual salary 12 years ago was $14,500; it is now $25,000. What is the average annual rate of increase?
Answers
Anonymous
25 = (1+r)^12 * 14.5
let z = 1+r
1.724 = z^12
12 log z = log 1.724
log z = .019714
z = 1.0464
so r = 0.0464
so 4.64 percent
let z = 1+r
1.724 = z^12
12 log z = log 1.724
log z = .019714
z = 1.0464
so r = 0.0464
so 4.64 percent