The Number of Students at a Local University Increased from 2,500

question 103

Multiple Choice

The number of students at a local university increased from 2,500 students to 5,000 students in 10 years. Based on a geometric mean, the university grew at an average percentage rate of

• A) 2,500 students per year.
• B) 1.071 percent per year.
• C) 7.1 percent per year.
• D) 250 students per year.

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Definitions:

Depreciation Cost

The systematic allocation of an asset's cost over its useful life to reflect the loss in value over time.

Plant Asset

Long-term tangible assets that are used in the production of goods and services, including machinery, buildings, and equipment.

Depreciable Cost

The total amount that can be depreciated over the life of an asset, typically the asset's cost minus its salvage value.

Salvage Value

The foreseen redemption value of an asset after its period of usability concludes.