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22 August, 08:58

What is the growth rate of the following?

y=1.07^ (x)

1. 0.7%

2. 7%

3. 107%

4. 93%

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Answers (1)
  1. 22 August, 12:28
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    1.07 = 1 + 0.07 = 100% + 7%

    The growth rate is 7%

    An example would be say you start off with 100 items. Multiply this with 1.07 and you should get 107 as a result, which is an increase of 7% (note how 7% of 100 = 7)
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