+216 In 2000 mobile handset sales totaled $414.99 million. In 2005 the total was $778.75 million. Let M = M(t) denote total mobile handset sales in year t. What was the average rate of change per year in M(t) from 2000 to 2005? (Round your answer to two decimal places.)
________ million dollars per year
If you want the SIMPLE average rate of change per year, then it is:
[$778.75 - $414.99] / 5 =$72.752M per year
If you want the COMPOUND average rate of change per year, then it is:
$778.75 - $414.99 =$363.76 increase in revenue over 5 years
FV=P{[1 + R]^N - 1/ R}=FV OF $1 PER PERIOD.
363.76 =P x [1.1342^5 - 1] / 0.1342
363.76 =P x 6.5345052155729296
P =363.76 / 6.5345052155729296
P =$55.67M - Average annual rate of change.
