Practice Questions on Growth Rate
Q1. Revenue of a company was $500,000 in 2018 and increased to $800,000 in 2021. Calculate the simple growth rate (SGR) of the company’s revenue over the three-year period.
Q2. Population of a town was 10,000 in 2015 and decreased to 8,000 in 2020. Calculate the compound annual growth rate (CAGR) of the town’s population over the five-year period.
Q3. A technology company had 500 employees in 2019 and grew to 750 employees in 2022. Calculate the simple growth rate (SGR) of the company’s workforce over the three-year period.
Q4. Sales of a product were $1 million in 2017 and increased to $1.5 million in 2020. Calculate the compound annual growth rate (CAGR) of the product’s sales over the three-year period.
Q5. Number of students enrolled in a university was 20,000 in 2010 and increased to 25,000 in 2015. Calculate the simple growth rate (SGR) of the university’s student enrollment over the five-year period.
Growth Rates: Formula, How to Calculate, and Examples
Growth rate is essential for analyzing changes over time in various fields, from finance and economics to population dynamics and scientific research. Whether you’re assessing the growth of an investment, the expansion of a business, or the increase in population, knowing how to calculate the growth rate accurately is invaluable.
In this article, we’ll explore different methods of calculating growth rates and provide examples to help you master this fundamental concept.
Table of Content
- What is Growth Rate?
- How to Calculate Growth Rates
- Simple Growth Rate Calculation
- Compound Annual Growth Rate (CAGR)
- Interpretation and Significance of Growth Rate
- Positive Growth Rate
- Negative Growth Rate
- Zero Growth Rate
- Factors Influencing Growth Rate
- Conclusion
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