In October 2017 a pound of apples cost $1.32, while oranges cost $1.59. Three years earlier the

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In October 2017 a pound of apples cost $1.32, while oranges cost $1.59. Three years earlier the price of apples was $1.36 a pound and that of oranges was $1.51 a pound.

a. What was the annual compound rate of growth in the price of apples?

b. What was the annual compound rate of growth in the price of oranges?

c. If the same rates of growth persist in the future, what will be the price of apples in 2030?

d. What about the price of oranges?

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Fundamentals of Corporate Finance

ISBN: 978-1260566093

10th edition

Authors: Richard Brealey, Stewart Myers, Alan Marcus

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Question Posted: Oct 25, 2019 06:53 AM

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In October 2017 a pound of apples cost $1.32, while oranges cost $1.59. Three years earlier the

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Fundamentals of Corporate Finance

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