eBook

Sawyer Corporation's 2018 sales were $9 million. Its 2013 sales were $4.5 million.

1. At what rate have sales been growing? Round your answer to two decimal places.

   %

2. 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-The statement is correct because 100% divided by 5 equals 20%

3. .The statement is incorrect because there are 6 years of sales growth between 2013 and 2018.

4. The statement is incorrect because a company's sales cannot double in such a short time span.

5. The statement is incorrect since the effect of compounding is not considered

6. .The statement is correct since the effect of discounting is considered.Item 2