Samsung's 2018 earnings per smartphone were $100, and its growth rateduring the prior 10 years was 15% peryear. If that growth rate were increased by20% of the old interest rate, how long (inyears) would it take for Samsung'searnings per smart phone to quadruple?

The current growth rate of 15% is increased by 20%. Then new growth rate =0.15*1.20 =0.18 or 18%…

Answered: 20% of the old interest rate, how long…

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20% of the old interest rate, how long (in years) would it take for Samsung's earnings per smart phone to quadruple?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Samsung's 2018 earnings per smart
phone were $100, and its growth rate
during the prior 10 years was 15% per
year. If that growth rate were increased by
20% of the old interest rate, how long (in
years) would it take for Samsung's
earnings per smart phone to quadruple?

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