In April 2013 a pound of apples cost $1.46, while oranges cost $1.10. Two years
ID: 2736103 • Letter: I
Question
In April 2013 a pound of apples cost $1.46, while oranges cost $1.10. Two years earlier the price of apples was only $1.25 a pound and that of oranges was $.96 a pound. 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.) What was the annual compound rate of growth m the price of oranges? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) 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.) 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.)Explanation / Answer
Annual compound price of apples = suareroot (1.46/1.25) -1 = 8.074%
Annual compound price of orange = suareroot (1.10/0.96) -1 = 7.043%
The price of apples in 2030 = (1.46)*(1.08074)^17 =$5.47
The price of orange in 2030 = (1.10)*(1.07043)^17 =$3.50