QID 870. Fortinet Inc., a cybersecurity firm headquartered in Sunnyvale, California, is one of many companies increasing compensation in a competitive job market. In 2019, the median worker at Fortinet was paid $121,933. Three years later, in 2022, the median worker received $202,853. What is the annual growth rate for this increase in wages? (Express answer as a percentage, round to one decimal place.)
QID 870. Fortinet Inc., a cybersecurity firm headquartered in Sunnyvale, California, is one of many companies increasing compensation in a competitive job market. In 2019, the median worker at Fortinet was paid $121,933. Three years later, in 2022, the median worker received $202,853. What is the annual growth rate for this increase in wages? (Express answer as a percentage, round to one decimal place.)
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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![### Problem Statement
**QID 870.** Fortinet Inc., a cybersecurity firm headquartered in Sunnyvale, California, is one of many companies increasing compensation in a competitive job market. In 2019, the median worker at Fortinet was paid $121,933. Three years later, in 2022, the median worker received $202,853. What is the annual growth rate for this increase in wages? (Express the answer as a percentage, rounded to one decimal place.)
---
### Solution
To calculate the annual growth rate for the increase in wages, we will use the formula for Compound Annual Growth Rate (CAGR):
\[ \text{CAGR} = \left( \frac{V_f}{V_i} \right)^{\frac{1}{n}} - 1 \]
where:
- \( V_f \) = Final Value ($202,853 in 2022)
- \( V_i \) = Initial Value ($121,933 in 2019)
- \( n \) = Number of years (2022 - 2019 = 3 years)
First, plug in the values into the formula:
\[ \text{CAGR} = \left( \frac{202,853}{121,933} \right)^{\frac{1}{3}} - 1 \]
Next, compute the ratio:
\[ \left( \frac{202,853}{121,933} \right) \approx 1.664 \]
Now, raise this value to the power of \( \frac{1}{3} \):
\[ 1.664^{\frac{1}{3}} \approx 1.183 \]
Subtract 1:
\[ 1.183 - 1 = 0.183 \]
Finally, convert this to a percentage:
\[ 0.183 \times 100 = 18.3\% \]
### Answer
The annual growth rate for this increase in wages is **18.3%**.
---
Please ensure calculations and interpretations are reviewed for accuracy in an educational setting.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fcede8746-e52f-4eaf-bfc2-0cf286297e7e%2F86effca9-273e-4327-8372-4480ee63e44e%2Fz9o6tf5_processed.jpeg&w=3840&q=75)
Transcribed Image Text:### Problem Statement
**QID 870.** Fortinet Inc., a cybersecurity firm headquartered in Sunnyvale, California, is one of many companies increasing compensation in a competitive job market. In 2019, the median worker at Fortinet was paid $121,933. Three years later, in 2022, the median worker received $202,853. What is the annual growth rate for this increase in wages? (Express the answer as a percentage, rounded to one decimal place.)
---
### Solution
To calculate the annual growth rate for the increase in wages, we will use the formula for Compound Annual Growth Rate (CAGR):
\[ \text{CAGR} = \left( \frac{V_f}{V_i} \right)^{\frac{1}{n}} - 1 \]
where:
- \( V_f \) = Final Value ($202,853 in 2022)
- \( V_i \) = Initial Value ($121,933 in 2019)
- \( n \) = Number of years (2022 - 2019 = 3 years)
First, plug in the values into the formula:
\[ \text{CAGR} = \left( \frac{202,853}{121,933} \right)^{\frac{1}{3}} - 1 \]
Next, compute the ratio:
\[ \left( \frac{202,853}{121,933} \right) \approx 1.664 \]
Now, raise this value to the power of \( \frac{1}{3} \):
\[ 1.664^{\frac{1}{3}} \approx 1.183 \]
Subtract 1:
\[ 1.183 - 1 = 0.183 \]
Finally, convert this to a percentage:
\[ 0.183 \times 100 = 18.3\% \]
### Answer
The annual growth rate for this increase in wages is **18.3%**.
---
Please ensure calculations and interpretations are reviewed for accuracy in an educational setting.
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