Question

Production of passenger cars in Japan increased from 3.94 million in 1999 to 6.74 million in 2009. What is the geometric mean annual percent increase?

Answer 1

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

`A=P(1+r)^t`

here , r is interest rate

so, we can plug values

`6.74=3.94(1+r)^(10)`

now, we can solve for

`\left(1+r\right)^(10)=(337)/(197)`

`r=0.05516`

so,

the geometric mean annual percent increase is 5.516%............Answer