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

The annual inflation rate is ​%.

User Cyanfish
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1 Answer

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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%.
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