Sawyer Corporation's 2018 sales were $5 million. Its 2013 sales were $2.5 million. a. At what rate have sales been growing? Round your answer to two decimal places. 14.87 % b. Suppose someone made this statement: "Sales doubled in 5 years. This represents a growth of 100% in 5 years; so dividing 100% by 5, we find the growth rate to be 20% per year." Is the statement correct? The statement is incorrect because there are 6 years of sales growth between 2013 and 2018.
Sawyer Corporation's 2018 sales were $5 million. Its 2013 sales were $2.5 million. a. At what rate have sales been growing? Round your answer to two decimal places. 14.87 % b. Suppose someone made this statement: "Sales doubled in 5 years. This represents a growth of 100% in 5 years; so dividing 100% by 5, we find the growth rate to be 20% per year." Is the statement correct? The statement is incorrect because there are 6 years of sales growth between 2013 and 2018.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Transcribed Image Text:Sawyer Corporation's 2018 sales were $5 million. Its 2013 sales were $2.5 million.
a. At what rate have sales been growing? Round your answer to two decimal places.
14.87
%
b. Suppose someone made this statement: "Sales doubled in 5 years. This represents a growth of 100% in 5
years; so dividing 100% by 5, we find the growth rate to be 20% per year." Is the statement correct?
The statement is incorrect because there are 6 years of sales growth between 2013 and 2018.
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A company sells its products and services.
This is done to generate revenue and earn a profit.
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