In 1970,before the era of major league baseball free agency,the minimum player salary was $12,000.In 1975,the minimum salary was $16,000.What was the average annual growth in the minimum salary in major league baseball over those five years?

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Quizplus · Accepted Answer

The average annual growth rate can be calculated using the formula:Average annual growth rate = (Ending value / Beginning value)^(1 / Number of years) - 1In this case, the beginning value is $12,000, the ending value is $16,000, and the number of years is 5.Plugging these values into the formula, we get:Average annual growth rate = ($16,000 / $12,000)^(1 / 5) - 1= 1.333 - 1= 0.0592Therefore, the average annual growth rate in the minimum salary in major league baseball over those five years was 5.92%.

In 1970,before the Era of Major League Baseball Free Agency,the