After mr Kuber introduced the new norms for lending the turnover of kuber and daughters went up from$100 million to $300 million in just 3 years. what is the compound growth rate of the company?
Answers
Answer:58.7%
Step-by-step explanation:
so this is the case of succesive percentage change where the principle here being 100 million becomes thrice to itself which is possible when the initial value is multiplied by three or lets say it becomes 300% of the original
so first here we see that using the formula of CI A=P(1+r/100)ⁿ becoming to: 300 million=100 million (1+r/100)³
3 = 1 (1+r/100)³
finding the cube root of three we get 1.587 that precisely means that the value becomes 1.587 time to the previous value every other year which woul mean a percentage of 58.7% so rate is 58.7%
Step-by-step explanation:
initial amount = $100 million
amount after 3 years = $300 million
300 = 100( 1+(r/100) )^3
3 = (1 + (r/100) )^3
1.44 = ( 1+ (r/100) )
r = 144 - 100
r = 44%