Question

You hear a pitch where the founder says he'll reach $30 million in sales in 5 years. His first-year sales are projected at $5 million. Which is closest to the compound growth rate he is implying?

Answer 1

56%

Step-by-step explanation:

Answer 2

43.1%

Step-by-step explanation:

Working out the interest rate given the Present Value, a Future Value and how many Periods.

The applicable formula is r = ( FV / PV )1/n - 1

Where r= interest rate

FV = future value... 30 m

Pv= present value... 5 m

n= number of periods.. 5

R = ( 30,000,000/ 5,000,000)1/5 -1

R=(6)0.2 -1

R=1.430969-1

R=0.430969

As a percentage , R=0.430969 x 100

=43.096

=43.1%