Growth Rate Formula? (County Tax Assessor spent $4,546,431 from the counties' general fund.)

JustinZ

New member
Joined
Feb 26, 2019
Messages
8
In 2017, the County Tax Assessor spent $4,546,431 from the counties' general fund. In 2018, they spent $5,823,399. In 2019 they propose to spend $6,015,301. What is the annual rate of growth in the amount of funds spent by the assessor?

I know how to do it when growth rate = present - past / past x 100. I'm getting tripped up over how to work in the propose amount.
 

tkhunny

Moderator
Staff member
Joined
Apr 12, 2005
Messages
9,914
Why is it ANY different from the calculation of the 2017-2018 Growth Rate?

BTW

present - past / past x 100 MEANS \(\displaystyle present - \dfrac{past}{past}\cdot 100 = present - 1\cdot 100 = present - 100\).

Are you SURE that's what you want?

Use parentheses to clarify meaning. (present - past) / past x 100
 

JustinZ

New member
Joined
Feb 26, 2019
Messages
8
Why is it ANY different from the calculation of the 2017-2018 Growth Rate?

BTW

present - past / past x 100 MEANS \(\displaystyle present - \dfrac{past}{past}\cdot 100 = present - 1\cdot 100 = present - 100\).

Are you SURE that's what you want?

Use parentheses to clarify meaning. (present - past) / past x 100
Sorry for the confusion. The formula I was using is (Present) - (Past) / (Past) x 100. I guess my question is, how does 6,015,301 tie into all of this? That's where I'm getting lost.
 

tkhunny

Moderator
Staff member
Joined
Apr 12, 2005
Messages
9,914
1) I failed to describe adequately that notation problem. You need (Present - Past). Neither "present - past" nor "(present)-(past)" does you any good.

2) How did you calculate the 2017-2018 growth rate? Do the 2019-2018 growth rate in EXACTLY the same way.
 

Dr.Peterson

Elite Member
Joined
Nov 12, 2017
Messages
3,595
In 2017, the County Tax Assessor spent $4,546,431 from the counties' general fund. In 2018, they spent $5,823,399. In 2019 they propose to spend $6,015,301. What is the annual rate of growth in the amount of funds spent by the assessor?

I know how to do it when growth rate = (present - past) / past x 100. I'm getting tripped up over how to work in the propose amount.
Here's my take on the problem: There is a rate of growth from 2017 to 2018, and there is a proposed rate of growth from 2018 to 2019. They are (very) different. The question asks for one rate, namely "in the amount of funds spent" - not in the amount proposed to be spent, which has not actually been spent. So I think the 2017-2018 rate is all they are asking for. If that's not what was intended, I'm not sure what is.

I presume you quoted the problem exactly and completely?
 

Denis

Senior Member
Joined
Feb 17, 2004
Messages
1,689
In 2017, the County Tax Assessor spent $4,546,431 from the counties' general fund. In 2018, they spent $5,823,399. In 2019 they propose to spend $6,015,301. What is the annual rate of growth in the amount of funds spent by the assessor?
Geeshhhhh...use 4,546 and 5,823 and 6,015 !!
 

JustinZ

New member
Joined
Feb 26, 2019
Messages
8

JustinZ

New member
Joined
Feb 26, 2019
Messages
8
Here's my take on the problem: There is a rate of growth from 2017 to 2018, and there is a proposed rate of growth from 2018 to 2019. They are (very) different. The question asks for one rate, namely "in the amount of funds spent" - not in the amount proposed to be spent, which has not actually been spent. So I think the 2017-2018 rate is all they are asking for. If that's not what was intended, I'm not sure what is.

I presume you quoted the problem exactly and completely?
Yes, I quoted it exactly how he gave it to us. He did give us four possible answer choices:
$1,468,870
2.65%
32% ???
15%
 

Jomo

Elite Member
Joined
Dec 30, 2014
Messages
3,529
Sorry for the confusion. The formula I was using is (Present) - (Past) / (Past) x 100. I guess my question is, how does 6,015,301 tie into all of this? That's where I'm getting lost.
tkhunny already told you that (Present) - (Past) / (Past) x 100 = present - 100 (since past/past=1 and 1*100=100)
tkhunny even told you how to write it correctly!
In any case, what have you done? Where are you stuck. Please show us your work so we can help.
 

Dr.Peterson

Elite Member
Joined
Nov 12, 2017
Messages
3,595
Well, the first is the absolute change from 2017 to 2019 proposal, and 32% is (average) the rate of increase over that time. I don't see where the other numbers come from. So I guess they are asking for the 32%. But they should have said what interval they were asking about. It isn't a well-worded question.
 

JustinZ

New member
Joined
Feb 26, 2019
Messages
8
tkhunny already told you that (Present) - (Past) / (Past) x 100 = present - 100 (since past/past=1 and 1*100=100)
tkhunny even told you how to write it correctly!
In any case, what have you done? Where are you stuck. Please show us your work so we can help.
Hey! I keep arriving at 32%. I just sent my teacher an email asking him to explain the problem in class tomorrow. Thanks!
 

Denis

Senior Member
Joined
Feb 17, 2004
Messages
1,689
I have no idea what you're trying to say. Sorry.
I wasn't annoyed at you...I was annoyed at your teacher
for using numbers like $6,015,301 :)
 

HallsofIvy

Elite Member
Joined
Jan 27, 2012
Messages
4,938
Which growth rate do you want to calculate?

The growth rate from 2017 to 2018 was (5283399- 4546431)/4546431= 16.2%.
The growth rate from 2018 to 2019 will be (6015301- 5283399)/5283399= 13.8%.
The growth rate from 2017 to 2019 will be (6015301- 4546431)/4546431= 32.3%. In this last case, the annual growth rate will be 32.3/2= 16.15%.
 

Denis

Senior Member
Joined
Feb 17, 2004
Messages
1,689
Disagree.
4546431(1 + r)^2 = 6015301 : r = .150253.....or ~15%
 
Top