In a factory, the production of cycles rose to 48, 400 from

In a factory, the production of cycles rose to 48, 400 from 40,000 in 2 years. The rate of growth per annum is

Using Rule 17,
If the rate of increase per annum be R%, then

A = P		1 +	R		^T
			100

⇒ 48400 = 40000		1 +	R		²
			100

⇒	484	=		1 +	R		²
	100				100

⇒	121	=		11		²	=		1 +	R		²
	100			10						100

⇒ 1 +	R	=	11
	100		10

⇒	R	=	11	- 1 =	1
	100		10		10

⇒ R =	100	= 10% per annum
	10