If real income per person was $47,210 in the U.S. in 2010, and $55,860 in 2014, what was the annual growth rate over this time period?
A)4.29 percent per year
B)1.83 percent per year
C)8.45 percent per year
D)1.18 percent per year

Question

​If real income per person was $47,210 in the U.S. in 2010, and $55,860 in 2014, what was the annual growth rate over this time period?
A)​4.29 percent per year
B)​1.83 percent per year
C)​8.45 percent per year
D)​1.18 percent per year

Quizplus · Accepted Answer

The annual growth rate can be calculated using the formula:r = (new value / old value)^(1/number of years) - 1In this case, the new value is $55,860, the old value is $47,210, and the number of years is 4.Plugging these values into the formula, we get:r = (55,860 / 47,210)^(1/4) - 1= 1.0429 - 1= 0.0429Converting this to a percentage, we get:r = 0.0429 * 100= 4.29%Therefore, the annual growth rate over this time period was 4.29 percent per year.

​If Real Income Per Person Was $47,210 in the U

If Real Income Per Person Was $47,210 in the U