1
advanced-mathA company's revenue grows from $500,000 to $4,000,000 in 6 years. What is the annual growth factor?
A
About 1.41
B
2.0
C
8.0
D
1.5
Correct Answer: A
Choice A is the correct answer. Find the annual growth factor.
- Total Growth: .
- Formula: , so .
- Solve: .
💡 Strategic Tip: To find , take the 6th root of the total growth factor.
Choice B is incorrect because this would give . Choice C is incorrect because this is the total growth, not annual. Choice D is incorrect because.