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A Company's Sales Dropped 10% Per Year for 5 Years

Question 192

Short Answer

A company's sales dropped 10% per year for 5 years.
a) What annual rate of sales growth for the subsequent 5 years would return the sales to the original level?
b) To the nearest month, how long would it take for sales to return to the original level if they increased at 10% per year?

Correct Answer:

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a) 11.11%,...

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