Question

If an asset declines in value from $5,000 to $4,100 over 9 years, what is the mean annual growth rate in the asset’s value over these 9 years? Enter your answer as a percentage. If needed, round your answer to 2 digit decimals.

Answer 1

Answer:

2.4 %

Step-by-step explanation:

annual growth is the changes in the value of asset

STEP 1: annual growth rate

= (current value - old value)/old value

= (4100 - 5000)/ 4100

= -0.2195 // 21.95%

Step 2: Mean of x

mean of x= average of x

          = total of x / count of x ( x here is the annual growth rate)

       = annual growth rate / no of years

        =  -0.2195/ 9

       = -0.02 // 2.4 %