In October 2017 a pound of apples cost $1.50, while oranges cost $1.14. Four years earlier the price of apples was only $1.29 a pound and that of oranges was $1.00 a pound. a. What was the annual compound rate of growth in the price of apples? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) b. What was the annual compound rate of growth in the price of oranges? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) c. If the same rates of growth persist in the future, what will be the price of apples in 2030? (Do not round intermediate calculations. Round your answer to 2 decimal places.) d. If the same rates of growth persist in the future, what will be the price of oranges in 2030? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
In October 2017 a pound of apples cost $1.50, while oranges cost $1.14. Four years earlier the price of apples was only $1.29 a pound and that of oranges was $1.00 a pound. a. What was the annual compound rate of growth in the price of apples? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) b. What was the annual compound rate of growth in the price of oranges? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) c. If the same rates of growth persist in the future, what will be the price of apples in 2030? (Do not round intermediate calculations. Round your answer to 2 decimal places.) d. If the same rates of growth persist in the future, what will be the price of oranges in 2030? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Chapter4: Time Value Of Money
Section4.2: Future Values
Problem 4ST
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b and c
Transcribed Image Text:In October 2017 a pound of apples cost $1.50, while oranges cost $1.14. Four years earlier the price of apples was only $1.29 a
pound and that of oranges was $1.00 a pound.
a. What was the annual compound rate of growth in the price of apples? (Do not round intermediate calculations. Enter your
answer as a percent rounded to 2 decimal places.)
b. What was the annual compound rate of growth in the price of oranges? (Do not round intermediate calculations. Enter
your answer as a percent rounded to 2 decimal places.)
c. If the same rates of growth persist in the future, what will be the price of apples in 2030? (Do not round intermediate
calculations. Round your answer to 2 decimal places.)
d. If the same rates of growth persist in the future, what will be the price of oranges in 2030? (Do not round intermediate
calculations. Round your answer to 2 decimal places.)
Compound annual growth rate of apples
3.84 %
a.
b.
Compound annual growth rate of oranges
3.33 %
Price of apples
d.
C.
Price of oranges
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