Advances in technology have improved the rate of production of widgets over the last 10 years and the number of plant workers required has declined by 25%. What is the equivalent annual rate of decrease during the period?

Equivalent Annual Rate

The interest rate that is annualized using compounding over a given period, making it comparable across different compounding frequencies.

Rate of Production

The speed at which goods or services are produced, usually measured over a specific time period.

Plant Workers

Individuals employed in industrial or manufacturing settings, responsible for operating machinery and producing goods.