How to calculate Sales Growth rates ?

[KSJT]

Maybe my brain is fried from other workbook problems but the chocies provided by the workbook don’t “jive” with the answers I am coming up with. With that said, what is the method to calculate :
ACME motors sold 150,000 cars in 1984. In 1986 it sold 800,000 cars. In 1989 it sold 5,000,000 cars
What is the sales growth rates (%) for
a. 1984 to 1986
b. 1986 to 1989
c. 1984 to 1989
I have a BA II Plus, if that helps
Thanks !

 

[S2000magician]

KSJT wrote:Maybe my brain is fried from other workbook problems but the chocies provided by the workbook don’t “jive” with the answers I am coming up with. With that said, what is the method to calculate :
ACME motors sold 150,000 cars in 1984. In 1986 it sold 800,000 cars. In 1989 it sold 5,000,000 cars
What is the sales growth rates (%) for …

Sales growth rate = ΔSales / Sales0 = (Sales1 – Sales0) / Sales0

KSJT wrote:a. 1984 to 1986

Sales growth rate = (800,000 – 150,000) / 150,000
= 650,000 / 150,000 = 433%
I’ll leave the other two to you.

 

[KSJT]

Thank you S2000 !

 

[S2000magician]

You’re welcome.