Question

I am unable to solve this problem. Tap for examples... if prices increase at a monthly rate of  2.4%, by what percentage do they increase in a year?

Answer 1

`28.8\%`.

Explanation:

We have been given that prices increase at a monthly rate of 2.4%. We are asked to find the percentage at which prices will increase in a year.

We know that 1 year equals 12 months.

To find the increase in one year, we will multiply monthly increase rate by 12 as:

`\text{Yearly increase rate}=12* 2.4\%`

`\text{Yearly increase rate}=28.8\%`

Therefore, the prices will increase at a rate of
`28.8\%` in a year.