We will use the growth rate formula shown below:
[tex]F=P(1+r)^n[/tex]Where
F is the future amount
P is the initial amount
r is the rate of growth
n is the number of years
Given,
P = 300
F = 500 [after 4 years]
n = 4
We will have to find r. Substituting, we get:
[tex]\begin{gathered} F=P(1+r)^n \\ 500=300(1+r)^4 \\ \frac{500}{300}=\frac{300(1+r)^4}{300} \\ \frac{5}{3}=(1+r)^4 \\ 1+r=\sqrt[4]{\frac{5}{3}} \\ r=\sqrt[4]{\frac{5}{3}}-1 \\ r=0.1367 \end{gathered}[/tex]The growth rate is r = 0.14 [rounded]
In percent, it is:
0.14 * 100 = 14%
