The production of bottles rose to 26000 from 16000 in 2 years. Find the rate of growth per annum.
Show answer & explanation
Correct answer: D
Explanation
Given:
Initial production = 16,000
Production after 2 years = 26,000
By formula:
A = P(1 + r/100)²
26,000 = 16,000(1 + r/100)²
26,000/16,000 = (1 + r/100)² = 1.625
1 + r/100 = √1.625 ≈ 1.2747
r/100 ≈ 0.2747
Growth rate per year = 27.47%