Compound Interest Practice Test 5

Question : 4 of 40

Marks: +1, -0

In a factory, production rose from 5,880 to 8,670 tonnes in just 2 years. Find the rate of growth p.a. compounded annually.

Solution:

8,670 = 5,880 (1+r/100)^2

8670/5880=(1+r/100)^2

289/196=(1+r/100)^2

(17/14)^2=1+r/100

3/14=1+r/100

r=300/14=21.43%

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