If prices increase at a monthly rate of 1.9 %, by what percentage do they increase in a year?

The annual inflation rate is %.

Question

Mathematics

Miguel Haney

22 July, 22:45

If prices increase at a monthly rate of 1.9 %, by what percentage do they increase in a year?

The annual inflation rate is %.

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Answers (1)

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Patrick Fuller · Answer 1

The monthly multiplier is 1+1.9% = 1.019. When this is multiplied by the price 12 times, the multiplier is (1.019) ¹² ≈ 1.2534. That is, the end-of-year prices are about 25.3% higher than at the beginning of the year.

The annual inflation rate is 25.3%.

If prices increase at a monthly rate of 1.9 %, by what percentage do they increase in a year?The annual inflation rate is %.

If prices increase at a monthly rate of 1.9 %, by what percentage do they increase in a year?

The annual inflation rate is %.