Concept explainers
To calculate: It is to find effective annual growth rate to select right option.
C. 19.56%
Given information: Monthly rate of increase is 1.63%
Concept used: 1 year=12 months
Explanation:
1 year has 12 months. So, multiply the monthly rate 1.63% by 12 to get annual growth rate.
So,
Annual growth rate =
Convert percent to decimal.
To convert percent to decimal divide percent by 100.
Simplify it,
=0.1956
Multiply the decimal by 100% to get in percent.
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