Four years ago, Robert's annual salary was $52,500. Today, he earns $73,800. What has been the average annual rate of growth of Robert's salary?
(1+r)^4 = 73800/52500 = 1.4057
1+r = 1.0888
r = 8.9%
To find the average annual rate of growth of Robert's salary, we need to calculate the percentage increase over the four-year period.
First, let's calculate the total increase in Robert's salary:
Total increase = Current salary - Initial salary
Total increase = $73,800 - $52,500
Total increase = $21,300
Next, let's calculate the average annual rate of growth:
Average annual rate of growth = Total increase / Number of years
Average annual rate of growth = $21,300 / 4 years
Average annual rate of growth = $5,325 per year
Therefore, the average annual rate of growth of Robert's salary is $5,325 per year.
To calculate the average annual rate of growth of Robert's salary, we need to find the difference between the current salary and the salary four years ago, and then divide it by the number of years.
Step 1: Subtract the salary four years ago from Robert's current salary:
$73,800 - $52,500 = $21,300
Step 2: Divide the difference by the number of years (4 in this case):
$21,300 / 4 = $5,325
Therefore, the average annual rate of growth of Robert's salary is $5,325 per year.