To calculate the growth rate in revenue for the first term of 2007 using the current period on the preceding period at annual rates, we can use the formula:
Growth Rate = ((R(IV)/R(III)) / ((R(III)/R(II))) - 1)*100
Substitute the given values:
Growth Rate = ((1733/1693) / (1693/1610)) - 1)*100
Growth Rate = ((1.0237) / (1.0556)) - 1)*100
Growth Rate = (0.9710 - 1)*100
Growth Rate = -0.029*100
Growth Rate = -2.9%
Therefore, the growth rate in revenue for the first term of 2007 compared to the previous year is -2.9%.
The data in the table below represents the revenue (in R 10 000) of a well – known supermarket for each over a two –year period: The growth rate in revenue for the first term of 2007, using the method current period on the preceding period at annual rates is:
2006 (I) R 1432
(II) R 1500
(III) R 1620
(IV) R 1648
2007 (I) R 1424
(II) R 1610
(III) R 1693
(IV) R 1733
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