I Icarus Registered User Messages 174 21 Mar 2007 #1 If a certain product's market value is now worth €200,000 per annum and was worth €100,000 10 years ago, has it grown by 10% a year or 5% a year on average? In other words, which figure should the basis of percentage growth be based on?
If a certain product's market value is now worth €200,000 per annum and was worth €100,000 10 years ago, has it grown by 10% a year or 5% a year on average? In other words, which figure should the basis of percentage growth be based on?
W woods Registered User Messages 780 21 Mar 2007 #2 I reckon that it works out at almost exactly 8% compound growth
P Protocol Registered User Messages 4,304 21 Mar 2007 #3 So it grew from 100k to 200k sales in 10 years? That's 100% growth over 10 years. The growth rate pa is (1+r)^10 = 2 (i.e. it doubled). By trial and error, I got 7.2% growth per annum. So (1.072)^10 = 2 approx.
So it grew from 100k to 200k sales in 10 years? That's 100% growth over 10 years. The growth rate pa is (1+r)^10 = 2 (i.e. it doubled). By trial and error, I got 7.2% growth per annum. So (1.072)^10 = 2 approx.
I Icarus Registered User Messages 174 22 Mar 2007 #6 These are the exact answers I was looking for. Thanks.