Problem 5-11 Growth rates Shalit Corporation's 2011 sales were $9 million. Its 2006 sales were $4.5 million. a. At what rate have sales been growing? Round your answer to two decimal places. b. 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 that statement correct? -Select- 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