Determine annual compound rate of growth in the price


Response to the following problem:

In mid-2010 a pound of apples cost $1.38, while oranges cost $1.22. Ten years earlier the price of apples was only $.98 a pound and that of oranges was $.76 a pound.

a. What was the annual compound rate of growth in the price of the two fruits? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Annual Compound rate growth for apples % ,Compound rate growth for oranges %  _

b. If the same rates of growth persist in the future, what will be the price of apples in 2030? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

c. What about the price of oranges? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

 

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Managerial Accounting: Determine annual compound rate of growth in the price
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