Sawyer Corporation's 2017 sales were $8 million. Its 2012 sales were $4 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?

   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 2012-2017.

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.