Sawyer Corporation's 2020 sales were $9 million. Its 2015 sales were $4.5 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?
   -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 2015 and 2020.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.Item 2