In 1939, two people teamed up to manufacture and market electronic test equipment. By 1957. the initial capital investment from themselves and a few friends that amounted to only $80.805.12 in 1939 had increased in value to an equivalent of $1 million. After this, the company skyrocketed to become a world leader in electronic equipment, computers, and a wide range of other products. If the net cash flow averaged $150.000 per year from 1957 to 2017 (60 years) at the same rate, these two individuals would be quite wealthy.
Determine the annual compound interest or inflation rate and discuss the differences in these rates from one situation to another?