Sales in a company are $196 million in 2009 and increase to $198 million in 2010. (a)

Question:

Sales in a company are $196 million in 2009 and increase to $198 million in 2010.
(a) Compute the percentage increase in sales using the usual formula
100 × (sales2010 - Sales2009) / Sales2009 .Compare this value to the approximation
100 × [ln(Sales2010) - ln(Sales2009)].
(b) Repeat (a) assuming Sales2010 = 205, Sales2010 = 250, and Sales2010 = 500.
(c) How good is the approximation when the change is small? Does the quality of the approximation deteriorate as the percentage change increases?