Sales of $26,900 grinder to $78,000 in a 11 years. Calculate the percentage growth per annum rounded to one decimal place. Assume the growth compounds annually.
FV=PV[1 + R]^N
78,000=26,900[1 + R]^11 take the logs of both sides
R=10.16% compounded annually.
78,000=26,900[1 + R]^11 divide both sides by 26,900,
2.899628253 =[1 + R]^11 take the log of both sides,
0.462342323 =11 Log [1 + R] divide both sides by 11,
Log [1 + R] =0.0420311......etc.
Log [1 + R] =10^.0420311=1.101618245,
R=1.101618245 - 1 x 100,
R=10.16% compounded annually.
