A monthly growth rate of 0.6% is an annual growth rate of:
A) 7.20%
B) 6.00%
C) 7.60%
D) 7.44%

Name: A monthly growth rate of 0.6% is an annual growth rate of: A) 7.20% B) 6.00% C) 7.60% D) 7.44%
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Question

Quizplus · Accepted Answer

To calculate the annual growth rate from a monthly growth rate, we can use the formula:

(1 + Monthly Growth Rate)^12 - 1

Plugging in 0.6% for the monthly growth rate, we get:

(1 + 0.006)^12 - 1 = 0.0744

Multiplying by 100 to convert to a percentage, we get:

7.44%

Therefore, the answer is choice D.

A Monthly Growth Rate of 0