Question

What is the Compounded Annual Growth Rate of the number of students taking the Undergraduate exam from 1995 to 1999?

• A. 1.5
• B. 2
• C. 3
• D. 6

Answer 1

The correct option is C

3

We need to look for (factor multiplication)${}^{1/n}$-1 = (1.13)${}^{1/4}$ -1 =3%
Shortcut - Go from answer options From the equation above, ((correct answer)% + 1)${}^4$= 1.13
Take a middle answer option If 2 is the answer, then 1.02${}^4$ = 1.08... we are looking for 1.1
Thus, the answer will be slightly greater than 2. The closest answer without further calculation is 3