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

question 211

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 34%, 26%, 24%, and 22% can be
Found by computing the geometric mean of 1.34, 1.26, 1.24, and 1.22. Find that average growth factor.

• A) 0.0187
• B) 1.5982
• C) 1.2642
• D) 0.6386

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