# The geometric mean is often used in business and economics for finding average rates of change, average rates of growth,

## Question:

The geometric mean is often used in business and economics for finding average rates of change, average rates of growth, or average ratios. To find the geometric mean of n values (all of which are positive), first multiply the values, then find the nth root of the product. For a 6-year period, money deposited in annual certificates of deposit had annual interest rates of 5.154%, 2.730%, 0.488%, 0.319%, 0.313%, and 0.268%. Identify the single percentage growth rate that is the same as the five consecutive growth rates by computing the geometric mean of 1.05154, 1.02730, 1.00488, 1.00319, 1.00313, and 1.00268.

## This problem has been solved!

Related Book For

## Mathematical Interest Theory

ISBN: 9781470465681

3rd Edition

Authors: Leslie Jane, James Daniel, Federer Vaaler

Question Details
Chapter # 3
Section: 3-1 Basic Skills and Concepts
Problem: 39
View Solution