Profit growth

The profit of a company increased by 25% during the year 1992, increased by 40% during the year 1993, decreased by 20% in the year 1994 and increased by 10% during the year 1995. Find the average growth in the profit level over the four years periods?

Correct result:

p =  11.3987 %

Solution:

q=(1+25100) (1+40100) (120100) (1+10100)=7750=1.54  p1=100 (q1)=100 (1.541)=54 %  q2=q1/4=1.5441.114  p=100 (q21)=100 (1.1141)=11.3987%



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One example about progression in percentage and depressed in percentage

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