Compute an annual compound rate of growth


Solve the below problem:

Q: In mid-2010 a pound of apples cost $1.38, while oranges cost $1.22. Ten years earlier the price of apples was only $.98 a pound and that of oranges was $.76 a pound.

a. What was the annual compound rate of growth in the price of the two fruits? Annual Compound rate growth for apples % Compound rate growth for oranges % ________________________________________

b. If the same rates of growth persist in the future, what will be the price of apples in 2030?

c. What about the price of oranges?

Solution Preview :

Prepared by a verified Expert
Accounting Basics: Compute an annual compound rate of growth
Reference No:- TGS02025264

Now Priced at $20 (50% Discount)

Recommended (92%)

Rated (4.4/5)