Ch 5- End of Chapter Problems - Part 1 Back to Assignment Attempts Keep the Highest / 2 6. Problem 5.11 (Growth Rates) eBook Sawyer Corporation's 2020 sales were $7 million. Its 2015 sales were $3.5 million. a. At what rate have sales been growing? Round your answer to two decimal places. b. Suppose someone made this statement: "Sales doubled in 5 years. This represents a growth of 100% in 5 years; so dividing 100% by 5, we find the growth rate to be 20% per year." Is the statement correct? Select The statement is correct because 100% divided by 5 equals 20%. The statement is incorrect because there are 6 years of sales growth between 2015 and 2020. The statement is incorrect because a company's sales cannot double in such a short time span. The statement is incorrect since the effect of compounding is not considered. The statement is correct since the effect of discounting is considered. Save & Continue continue without saving