Over five years, the value of a business decreased by 40%. Then, the value increased by 67% in the subsequent five years. Calculate the annual growth rate of the business's value for ten years. © 27% O 0% O 2.7% O 0.95% 1.75%

Over five years, the value of a business decreased by 40%. Then, the value increased by 67% in the subsequent five years. Calculate the annual growth rate of the business's value for ten years. © 27% O 0% O 2.7% O 0.95% 1.75%

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Question

Over five years, the value of a business decreased by 40%. Then, the value increased by 67% in the subsequent five
years. Calculate the annual growth rate of the business's value for ten years.
27%
0 0%
O 2.7%
O 0.95%
1.75%

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