The correct answer is (c).
The price of the share of a company becomes 16 times in 4 years. This means that the price of the share has increased by a factor of 16. The average annual rate of increase is the percentage increase in the price of the share each year. To calculate the average annual rate of increase, we can use the following formula:
Average annual rate of increase = (final value – initial value) / initial value * 100%
In this case, the final value is 16 and the initial value is 1. Therefore, the average annual rate of increase is:
Average annual rate of increase = (16 – 1) / 1 * 100% = 1500%
This means that the price of the share has increased by an average of 1500% each year.
Option (a) is incorrect because it is the percentage increase in the price of the share over the entire 4-year period. Option (b) is incorrect because it is the percentage increase in the price of the share over the first year. Option (d) is incorrect because it is not a possible answer.