Question

Production of passenger cars in Japan increased from 3.94 million in 1990 to 6.74 million in 2000. What is the geometric mean annual percent increase?

Answer 1

Answer:

Let's assume initial population is in 1999 so, production of passenger cars in Japan is 3.94 million in 1999 so, P=3.94 million and the production of passenger cars in Japan is 6.74 million in 2009 so, A=6.74 million in t=2009-1999=10 years now, we can use formula here , r is interest rate so, we can plug values now, we can solve for so, the geometric mean annual percent increase is 5.516%.