Question

A factory increase the production of its machine parts from 80,000 to 92,610 in 3 years. find the rate of growth ?

Answer 1

Answer:

It is given that

Production of cars in 2011-2012 = 80000

Production of cars in 2014-2015= 92610

Period (n) = 3 years

Consider r% as the rate of increase

We know that

A/P = (1+r/100)

n

Substituting the values

92610/80000=(1+r/100)

3

By further calculation

(21/20)

3

=(1+r/100)

3

We can write it as

1+r/100=21/20

r/100=21/20−1=1/20

By cross multiplication

r=1/20×100=5

Hence, the annual rate of growth of production of cars is 5% p.a.