The data in the table represents the revenue (in R 10 000) of a well – known supermarket for each over a two – year period: The growth rate in revenue for the third term of 2007, using the method current period on the preceding period is:

Question

The data in the table represents the revenue (in R 10 000) of a well – known supermarket for each over a two – year period: The growth rate in revenue for the third term of 2007, using the method current period on the preceding period is:

2006 (I) R 1432
(II) R 1500
(III) R 1620
(IV) R 1648
2007 (I) R 1424
(II) R 1610
(III) R 1693
(IV) R 1733

Answer 1

To calculate the growth rate for the third term of 2007 using the current period on the preceding period method, we use the formula:

Growth rate = (Revenue in current period - Revenue in previous period) / Revenue in previous period

So for the third term of 2007:
Growth rate = (R 1693 - R 1610) / R 1610
Growth rate = 83 / 1610
Growth rate ≈ 0.05155 or 5.155%

Therefore, the growth rate in revenue for the third term of 2007 is approximately 5.155%.