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:

Question

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

-45.89%


-44.25%


-13.59%


0.4425%


55.75%

Answer 1

To calculate the growth rate in revenue for the first term of 2007 using the current period on the preceding period at annual rates method, we can use the formula:

Growth Rate = (Revenue in 2007 - Revenue in 2006) / Revenue in 2006 * 100

Using the revenue values from the table:
Revenue in 2006 (IV) = R 1648
Revenue in 2007 (I) = R 1424

Growth Rate = (1424 - 1648) / 1648 * 100
Growth Rate = -224 / 1648 * 100
Growth Rate = -13.59%

Therefore, the growth rate in revenue for the first term of 2007 using the current period on the preceding period at annual rates method is -13.59%.