Millat Corporation’s 2016 sales were 12 million. Its 2015 sales were 6 million. a. At what rate have sales been growing? b. Suppose someone made this statement: “Sales doubled in 5 years. This represents growth of 100% in 5 years; so dividing 100% by 5, we find the growth rate to be 20% per year.” Is that statement correct?
Millat Corporation’s 2016 sales were 12 million. Its 2015 sales were 6 million. a. At what rate have sales been growing? b. Suppose someone made this statement: “Sales doubled in 5 years. This represents growth of 100% in 5 years; so dividing 100% by 5, we find the growth rate to be 20% per year.” Is that statement correct?
Chapter4: Time Value Of Money
Section4.2: Future Values
Problem 4ST
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Millat Corporation’s 2016 sales were 12 million. Its 2015 sales were 6 million.
a. At what rate have sales been growing?
b. Suppose someone made this statement: “Sales doubled in 5 years. This represents
growth of 100% in 5 years; so dividing 100% by 5, we find the growth rate to be
20% per year.” Is that statement correct?
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