If x grows at 3 percent and y grows at -2 percent and w = x/y, then w grows at 1 percent.

Name: If x grows at 3 percent and y grows at -2 percent and w = x/y, then w grows at 1 percent.
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Question

Quizplus · Accepted Answer

Let's say x starts at 100 and y starts at 50. After one year, x will be 103 and y will be 51.02 (assuming F1F1F1S1 is equal to 2%).

So, w = x/y = 100/50 = 2. After one year, w will be 2.0196.

Therefore, w grows at approximately 1.96%, not 1%. Thus, the statement is false.

If X Grows at 3 Percent and Y Grows at -2