Question

A factory kept on increasing its profit, the same percent every year. Find the percent if it is known that the output doubled in last 2 years.

Answer 1

Let P be original profit, r be rate increase each year
P(2) = P(1+r)^2 = 2P

--> (1+r)^2 = 2
1+r = sqrt2
r = sqrt2 - 1
r = .414 or 41.4%