1. According to the Census:
The amount of consumer credit outstanding (in billions of dollars) for selected years is as follows:
a. Find the geometric meanfive-year rate of increase in consumer credit outstanding.
Hint: you’ll need to compute percent changes first. Use Excel or do by hand. Regardless,describe your steps to get to your final answer.
b. Use the geometric mean rate of increase to project the amount of consumer credit outstanding in 2013. Do this by hand.
The Solution provides the geometric mean five-year rate of increase in consumer credit outstanding.
The consumer credit outstanding in 2013 is also projected.