In 1997 a total of 14959000 taxpayers in the United States f

In 1997, a total of 14,959,000 taxpayers in the United States filed their individual tax returns electronically. By the year 2009, the number increased to 61,295,000. What is the geometric mean annual increase for the period? (Round your answer to 2 decimal places.)

Solution

Here,

P = Po (1+r)^t

Thus, here,

61295000 = 14959000*(1+r)^12

61295000/14959000 = (1+r)^12

(61295000/14959000)^(1/12) - 1 = r

r = 0.124717728 = 12.47% [ANSWER]