Question

in a firm, the production of bags increased from 16,000 to 25,000 in 2 years. find the annual rate of growth . answer in image​

Answer 1

Answer:

25% per annum

Step-by-step explanation:

Let the Annual rate of growth be R.

A = P (1 + R/100)ⁿ

=> 25,000 = 16,000 (1 + R/100)²

=> 25/16 = (1 + R/100)²

=> (5/4)² = (1 + R/100)²

=> 1 + R/100 = 5/4

=> R/100 = 5/4 - 1

=> R/100 = 1/4

=> R = 25%

Answer 2

Answer :

›»› The annual rate of growth is 25% per annum.

Step-by-step explanation :

Provided :

• In a firm, the production of bags increased from 16,000 to 25,000 in 2 years.

Find out :

• The annual rate of growth.

Solution :

As we are given with the amount, principal and time, that is,

• Amount = Rs. 25000
• Principal = Rs. 16000.
• Time = 2 years.

W have to find out the annual rate of growth.

We know that if we are given with the amount, principal and time then we have the required formula, that is,

→ A = P(1 + R/100)ⁿ.

Here,

• A is the Amount.
• P is the Principal.
• R is the Rate.
• n is the Time.

Substituting all the given values in the formula, we get :

→ 25000 = 16000(1 + R/100)²

→ 25000/16000 = (1 + R/100)²

→ 25/16 = (1 + R/100)²

→ (5/4)² = (1 + R/100)²

→ 5/4 = 1 + R/100

→ 5/4 - 1 = R/100

→ [{(5 * 1) - (4 * 1)}/4] = R/100

→ (5 - 4)/4 = R + 100

→ 1/4 = R/100

→ R/100 = 1/4

→ 4 * R = 100 * 1

→ 4R = 100 * 1

→ 4R = 100

→ R = 100/4

→ R = 25

Hence, the annual rate of growth is 25% per annum.