Question

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

What was the monthly growth rate?

Answer 1

15%

Explanation:

Assume the price is $1200

Increased price is $1200×115%=1380

The diffrence is $1380-$1200=$180(a year)

A month is $180÷12months =15%

Answer 2

1.22%.

Explanation:

To find the monthly growth rate from the given annual growth rate of 15%, you can use the following formula:

Monthly Growth Rate = (1 + Annual Growth Rate)^(1/12) - 1

Let's plug in the values:

Annual Growth Rate = 15% = 0.15

Monthly Growth Rate = (1 + 0.15)^(1/12) - 1 ≈ 0.0122

So, the monthly growth rate is approximately 1.22%.