Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

In December 2020 , a pound of lemons cost $1.896, while a pound of bananas cost $0.572. Three years earlier, the price of lemons was

image text in transcribed
In December 2020 , a pound of lemons cost $1.896, while a pound of bananas cost $0.572. Three years earlier, the price of lemons was $1.989 a pound and that of bananas was $0.558. a. What was the annual compound rate of growth in the price of lemons? Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 4 decimal places. Negative answers should be indicated with a minus sign. b. What was the annual compound rate of growth in the price of bananas? Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 4 decimal places. c. If the same rates of growth persist in the future, what will be the price of lemons in 2030 ? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. d. What about the price of bananas? Note: Do not round intermediate calculations. Round your answer to 2 decimal places

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Finance questions