Question

If an asset declines in value from $5000 to $3500 over nine years, what is the mean annual growth rate in the asset's value over these nine years? Round your answer to two decimal places.

Answer 1

If an asset declines in value from $5000 to $3500 over nine years, then the mean annual growth rate in the asset's value over these nine years to two decimal places is given by:

$Mean\, growth\, rate= \frac{3500-5000}{9} = \frac{-1500}{9} =-\ 166.67$