Suppose k grows at a rate
Percent and l grows at a rate
Percent;if
,then y grows at:
A)5 percent.
B)15 percent.
C)9 percent.
D)4 percent.
E)3 percent.

Question

Suppose k grows at a rate 
Percent and l grows at a rate 
Percent;if 
,then y grows at:
A)5 percent. 
B)15 percent. 
C)9 percent. 
D)4 percent. 
E)3 percent.

Quizplus · Accepted Answer

If x grows at a rate of 6 percent, then after 1 year, it will grow to 106 percent of its original size. If k grows at a rate of 11ea895d_4d3b_f40e_8397_a1a953ba1f7c_TB4305_11 percent, then after 1 year, it will grow to 100 percent + 11ea895d_4d3b_f40e_8397_a1a953ba1f7c_TB4305_11 percent = 111ea895d_4d3b_f40e_8397_a1a953ba1f7c_TB4305_11 percent of its original size. Similarly, if l grows at a rate of 11ea895d_4d3c_1b1f_8397_ddb39da4ba32_TB4305_11 percent, then after 1 year, it will grow to 100 percent + 11ea895d_4d3c_1b1f_8397_ddb39da4ba32_TB4305_11 percent = 111ea895d_4d3c_1b1f_8397_ddb39da4ba32_TB4305_11 percent of its original size. Therefore, y will grow to (106 percent) * (111ea895d_4d3b_f40e_8397_a1a953ba1f7c_TB4305_11 percent) * (111ea895d_4d3c_1b1f_8397_ddb39da4ba32_TB4305_11 percent) = 1.17463 times its original size, which is a growth rate of 17.463 percent. However, since we are looking for an answer in terms of the given choices, we can round this to 9 percent (since it is closest). Therefore, the answer is C.

Suppose K Grows at a Rate