Which growth rate has more meaning-the total rate

Reference no: EM131183659

Great Lakes Health Network's net income increased from $3.2 million in 1997 to $6.4 million in 2007. The total growth rate over the ten years is 100 percent, while the annual growth rate is only about 7.2 percent, which is much less than 100 percent divided by ten years.

a. Why does this relationship hold?

b. Which growth rate has more meaning-the total rate over ten years or the annualized rate?

Reference no: EM131183659

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