What rate of nominal growth is expected in sales if they are currently $1,000,000 and are expected to reach $1,600,000 in 5 years? Assume an inflation rate of 3.5%.
A) 3.20%
B) 9.86%
C) 12.00%
D) 26.49%

Name: What rate of nominal growth is expected in sales if they are currently $1,000,000 and are expected to reach $1,600,000 in 5 years? Assume an inflation rate of 3.5%. A) 3.20% B) 9.86% C) 12.00% D) 26.49%
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Question

Quizplus · Accepted Answer

($1,600,000 / $1,000,000)^1/5 − 1 = 9.86%

What Rate of Nominal Growth Is Expected in Sales If