You gave your little sister two rabbits for Easter three years ago and now she has 84 of the cute little bunnies
What is the average annual rate of increase in the number of rabbits your sister owns? Note: Your parents are not very pleased with you right now.
A) 247.60%
B) 14.00%
C) 410.00%
D) The TVM equations are designed for currency amounts and cannot be used for non-financial calculations such as this one.
Answer: A
Explanation: A) r = (FV/PV)1/n - 1 = (84/2)1/3 - 1 = 247.60%
MODE = END
INPUT 3 ? -2 0 84
KEY N I/Y PV PMT FV
CPT 247.60
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