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Growth RatesSales for Hanebury Corporation's just-ended year were $20million. Sales were $10 million 5 years earlier.At what rate did sales grow? Do not round intermediatecalculations. Round your answer to two decimal places. %Suppose someone calculated the sales growth for HaneburyCorporation in part a as follows: "Sales doubled in 5 years. Thisrepresents a growth of 100% in 5 years; dividing 100% by 5 resultsin an estimated growth rate of 20% per year." Explain what is wrongwith this calculation.choices-Select-The statement is incorrect since the effect ofcompounding is not considered.The statement is correct because 100%divided by 5 equals 20%.The statement is incorrect because thereare 6 years of sales growth between initial and final years.Thestatement is incorrect because a company's sales cannot double insuch a short time span.The statement is correct since the effect ofdiscounting is considered.