Geometric mean

1. According to the Census:
http://www.census.gov/compendia/statab/cats/banking_finance_insurance/payment_systems_consum
er_credit_mortgage_debt.html

The amount of consumer credit outstanding (in billions of dollars) for selected years is as follows:

1998: $1,421
2003: $2,078
2008: $2,563

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.