Sawyer Corporation's 2020 sales were $11 million. Its 2015 sales were $5.5 million. a. At what rate have sales been growing? Round your answer to two decimal places. 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? -Select-

Corporate Fin Focused Approach
5th Edition
ISBN:9781285660516
Author:EHRHARDT
Publisher:EHRHARDT
Chapter4: Time Value Of Money
Section4.2: Future Values
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Sawyer Corporation's 2020 sales were $11 million. Its 2015 sales were $5.5 million.
a. At what rate have sales been growing? Round your answer to two decimal places.
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?
-Select-
Transcribed Image Text:eBook Sawyer Corporation's 2020 sales were $11 million. Its 2015 sales were $5.5 million. a. At what rate have sales been growing? Round your answer to two decimal places. 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? -Select-
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