Answer:
4.37%
Step-by-step explanation:
Given: Value of object in 1997 is $5000
Value of object in 2012 is $4500.
Number of years (2012-1997)= 15 years
∵We know that there is growth in value of object over multiple years.
∴Compound annual growth rate (CAGR)= [tex][(\frac{end\ value}{initial\ value} )^{\frac{1}{n} } ] -1[/tex]
Remember, n = number of years
∴ Growth rate= [tex][(\frac{9500}{5000} )^{\frac{1}{15} } ]-1[/tex]
⇒Growth rate= [tex][(1.9)^{\frac{1}{15} } -1][/tex]
⇒Growth rate= [tex](1.9)^{0.0667} -1= 1.0437-1[/tex]
⇒ Growth rate= 0.0437
Now, finding percentage of growth rate
∴ [tex]0.0437\times 100= 4.37\%[/tex]
∴ Annual growth percent over the period of time is 4.37%
