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mr Goodwill [35]
4 years ago
15

Shalit Corporation’s 2008 sales were $12 million. Its 2003 sales were $6 million. a. At what rate have sales been growing? b. Su

ppose someone made this statement: “Sales doubled in 5 years. This represents a 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?
Business
1 answer:
Inga [223]4 years ago
6 0
(12-6)/12 gives you the growth rate *over five years* (115%)
divide that by 5 and you get an average rate of 23% growth per year.
If we’re rounding, yes, that statement is correct. Otherwise, growth over five years doubled because there was a growth of 115% and year-over-year growth was 23%.
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