a.
Growth rate for Year 1 - Year 2:
(114 - 94) / 94 = 0.2128
Growth rate for Year 2 - Year 3:
(154 - 114) / 114 = 0.3509
Growth rate for Year 3 - Year 4:
(164 - 154) / 154 = 0.0649
b.
Average growth rate:
(0.2128 + 0.3509 + 0.0649) / 3 = 0.2095
The average growth rate is 0.2095 or 20.95%.
Consider the following observations of a series:
Year 1 Year 2 Year 3 Year 4
94 114 154 164
a. Calculate the growth rates for Year 1–Year 2, Year 2–Year 3, and Year 3–Year 4. (Round your answers to 4 decimal places.)
b. Calculate the average growth rate. (Enter your answer as a percentage, rounded to 2 decimal places, using intermediate calculations rounded to at least 4 decimal places.)
1 answer
4 answers