Question

In 1992, a postage stamp cost $0.25. In 2004, a postage stamp cost $0.37. What is the average rate of change in postage cents per year?

Answer 1

Answer: 0.01 (One cent per year)

Explanation:

We need to find the price the stamp increased per year.

The difference in years is 12.

2004 - 1992 = 12

The difference in price is 0.12.

0.37 - 0.25 = 0.12

So to find price increase per year we do the following:

$0.12/12 = 0.01

$0.01 is one cent per year.