Answered

Looking for trustworthy answers? Westonci.ca is the ultimate Q&A platform where experts share their knowledge on various topics. Our platform provides a seamless experience for finding reliable answers from a network of experienced professionals. Connect with a community of professionals ready to provide precise solutions to your questions quickly and accurately.

Consider a company's profits for the years 2001, 2002, and 2003. The profit was $10,000 in 2000, increased to $12,000 in 2001, further increased to $15,000 in 2002, and then decreased to $12,000 in 2003. Compute the percentage increase, and subsequently, find the average increase rate for this company over the three consecutive years.

Sagot :

Answer:

Step-by-step explanation:

Percentage Increase from 2000 to 2001:

Profit in 2000: $10,000

Profit in 2001: $12,000

Percentage increase:

((Profit in 2001−Profit in 2000​) / Profit in 2000) ×100% =

((10000−12000​) / 10000) ×100% =20%

Percentage Increase from 2001 to 2002:

Profit in 2001: $12,000

Profit in 2002: $15,000

((Profit in 2002−Profit in 2001​) / Profit in 2001) ×100% =

((15000−12000​) / 12000) ×100% =25%

Percentage Decrease from 2002 to 2003:

Profit in 2002: $15,000

Profit in 2003: $12,000

Percentage decrease:

((Profit in 2003−Profit in 2002​) / Profit in 2002) ×100% =

((12000−15000​) / 15000) ×100% =-20%

Average Increase Rate:

To find the average increase rate over the three years, sum the percentage changes and divide by 3

{((20%+25%​) - 20% )/ 3} = 83.3%

Therefore, the average increase rate for this company’s profits over the three consecutive years is approximately 8.33%

Thank you for your visit. We are dedicated to helping you find the information you need, whenever you need it. Thanks for stopping by. We strive to provide the best answers for all your questions. See you again soon. Thank you for choosing Westonci.ca as your information source. We look forward to your next visit.