In 1976, the average price of a domestic car was $5,100.Twenty years later, in 1996, the average price was $16,600.What was the annual growth rate in the car price over the 20-year period?

Question

Quizplus · Accepted Answer

The annual growth rate can be calculated using the formula:Growth rate = (Final value / Initial value)^(1/number of years) - 1Plugging in the values, we get:Growth rate = (16600 / 5100)^(1/20) - 1= 1.06 - 1= 0.06 or 6%Therefore, the annual growth rate in the car price over the 20-year period was 6%.

In 1976, the Average Price of a Domestic Car Was