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

1 Answer
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%.