Sawyer Corporation's 2015 sales were $12 million. Its 2010 sales were $6 million.

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

%

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?

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.