# What will the Growth Rate Cycles Production in the Factory? If

In a factory, the production of cycles rose to 48,400 from 40,000 in 2 years. The rate of growth per annum is:

- 8%
- 9%
- 10.5%
- 10%

**Answer: (4) 10%**

**Explanation:-**

Let the rate of growth of production of cycles = R%

After two years production of cycles = 48,400

Therefore,

48400 = 40,000(1 + R/100)^{2
}= (1 + R/100)^{2} = 48400/40,000

(1 + R/100)^{2} = 484/400

(1 + R/100)^{2} = (22/20)^{2
}Comparing on both side,

1 + R/100 = 22/20

(100 + R) x 20 = 22 x 100

100 + R = 22 x 5

R = 110 – 100

R = 10%

Hence, the answer is (4) 10%.