Question

Enrollment was increasing at a rate of 20% per year.

What was the monthly growth rate?

Enter your answer, rounded to the nearest tenth of a percent, in the box.

Answer 1

1.5%

Step-by-step explanation:

At the end of 12 months, the multiplier for enrollment will be ...

... (1 +r)^12

for some monthly increase of r. We want to find r when that value (the multiplier for the year) is ...

... 1+20% = 1.20

Solving for r, we have ...

... (1 +r)^12 = 1.20

... 1 +r = 1.20^(1/12) . . . . take the 1/12 power of both sides

... r = 1.20^(1/12) -1 ≈ 0.0153095 ≈ 1.5%

Answer 2

1) you must divide the anual rate by 12 to obtain the monthly rate, remember (i = 20/100 = 0,2)

I= 0,2/12 = 0,01666667≅0,017