Solve the Problem. -The Geometric Mean Is Often Used in Business and Economics

question 140

Multiple Choice

Solve the problem.
-The geometric mean is often used in business and economics for finding average rates of change, average rates of growth, or average ratios. Given n values (all positive) , the geometric mean is the nth root of their product. The average growth factor for money compounded at annual interest rates of 49%, 19%, 24%, and 13% can be found by computing the geometric mean of 1.49, 1.19, 1.24, and 1.13. Find that average growth factor.

• A)0.0116
• B)1.5762
• C)0.6211
• D)1.2555