During the past eight years, the level of demand for a company's product has increased from 100 units per day to 137 units per day. What was the average annual compound growth rate over this period?
A) 37.00 percent
B) 4.63 percent
C) 4.01 percent
D) None of the above is correct.

Question

Quizplus · Accepted Answer

The average annual compound growth rate can be calculated using the formula: CAGR = (Ending Value/Beginning Value)^(1/Number of Years) - 1. Plugging in the values: CAGR = (137/100)^(1/8) - 1 = 0.0401 or 4.01 percent.

During the Past Eight Years, the Level of Demand for a Company's