Question

In a factory the production of scooters rose to 46305 from 40000 in 3 years. Find the annual rate of growth of the production of scooters.

Answer 1

Given details are,

Initial production of scooters is = 40000

Final production of scooters is = 46305

Time = 3 years

Let annual growth rate be = R%

By using the formula,

A = P (1 + R/100)ⁿ

46305 = 40000 (1 + R/100) (1 + R/100) (1 + R/100)

46305 = 40000 (1 + R/100)³

(1 + R/100)³ = 46305/40000

= 9261/8000

= (21/20)³

1 + R/100 = 21/20

R/100 = 21/20 – 1

R/100 = (21-20)/20

= 1/20

R = 100/20

= 5

∴ Annual rate of growth of the production of scooters is 5%.