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Shalit Corporation's 2011 sales were $8 million. Its 2006 sales were $4 million. At what rate...

Shalit Corporation's 2011 sales were $8 million. Its 2006 sales were $4 million.

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

Solutions

Expert Solution

Time Period =2006 to 2011

= 5 Years

Present Value = $ 4 Million

Future Value = $ 8 Million

Future Value = Present Value*(1+Rate of Interest)^Time

$ 8 Million = $ 4 Million*(1+Rate of Interest)^5

[($ 8 Million / $ 4 Million)^(1/5)]-1 = Rate of Interest

Rate of Interest = 14.87%

Answer = 14.87%

jeff jeffy answered 2 years ago
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