Final answer:
The price of gold decreases by 78.4% in a year if the monthly rate of decrease is 1.9%.
Step-by-step explanation:
To calculate the percentage decrease in a year, we need to find the monthly decrease rate and then calculate it for 12 months. Given that the price of gold decreases at a monthly rate of 1.9%, we can calculate the annual decrease percentage as follows:
First, we convert the monthly decrease rate to a decimal by dividing it by 100: 1.9% / 100 = 0.019.
Next, we calculate the decrease for 12 months by raising the decimal rate to the power of 12 (since there are 12 months in a year): (1 - 0.019)^12 = 0.784.
Finally, we convert the decimal to a percentage by multiplying it by 100: 0.784 * 100 = 78.4%.
If the price of gold decreases at a monthly rate of1.9%, by what percentage does it decrease in a year?