Chia Burgers began operations by opening 115 restaurants in Western Canada at the end of its first year of operations. By the end of year 2, an additional 5 restaurants were opened. By the end of year 3, there were 130 restaurants operational. At the end of year 5, there were 138 total restaurants. From the end of year 1 to the end of year 5, the number of eating establishments grew at a rate of ____________ compounded annually.

Question

Quizplus · Accepted Answer

The growth rate can be calculated using the formula for compound annual growth rate (CAGR), which is $CAGR = \left( \frac{V_f}{V_i} \right)^{\frac{1}{n}} - 1$, where $V_f$ is the final value, $V_i$ is the initial value, and $n$ is the number of periods. Here, $V_f = 138$, $V_i = 115$, and $n = 4$ years (from the end of year 1 to the end of year 5). Plugging these values into the formula gives a CAGR of approximately 4.7%.

Chia Burgers Began Operations by Opening 115 Restaurants in Western