Question

A price was increasing at a rate of 15% per year.

What was the monthly growth rate?



Enter your answer, rounded to the nearest tenth of a percent, in the box.

Answer 1

Answer: it's 1.3 because that's equivalent to 1.25%

Explanation:

Answer 2

The monthly growth rate is the annual growth rate divided by 12, because there are 12 months in a year.

monthly rate = 15% ÷ 12
monthly rate = 15/100 ÷ 12
monthly rate = 15/100 × 1/12
monthly rate = 15/1,200
monthly rate = 1.25/100
monthly rate = 1.25%

The monthly growth rate is 1.25% or approximately 1.3%
Enter 1.3 in the box