If prices increase at a monthly rate of 3.5%, by what percentage do they increase in a year ?

1 Answer
Koekeltje
Jun 21, 2018

#51.1%#

Explanation:

The growth factor for one month is #g_"month"=1.035#.

There are #12# months in a year, and every month the price increases with factor #g_"month"#. So after a year the price will have increased with factor #g_"month"^12=1.035^12~~1.511#.
The price therefore increases with #51.1%#.

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