Problem 5.11

GROWTH RATES..........................

8. Problem 5.11 GROWTH RATES Sawyer Corporation's 2015 sales were $11 million. Its 2010 sales were $5.5 million. a. At what rate have sales been growing? Round your answer to two decimal places. \"/0 b. Suppose someone made this statement: "Sales doubled in 5 years. This represents a growth of 100% in 5 years, so, dividing 100% hv S. we nd the nrnwth rate in he 3'an ner veer." Ty: the statement rnrrecf? J -Select The statement is correct because 100% divided by 5 equals 20%. The statement is incorrect because there are 6 years of sales growth between 2005 and 2010. The statement is incorrect because a company's sales cannot double in such a short time span. The statement is incorrect since the effect of compounding is not considered. The statement is correct since the effect of discounting is considered. Continue without saving