Question

Last year, the total revenue for Home Style, a national restaurant chain, increased 5.25% over the previous year. If this trend were to continue, which expression could the company's chief financial officer use to approximate their monthly percent increase in revenue

Answer 1

The monthly increase of revenue is 0.4273%

Step-by-step explanation:

given annual interest rate=5.25%

There are 12 months in a year

Dividing yearly interest rate to monthly interest rate,the equation will be

`(1+i_(a))=(1+i_(m))^(12)`

As
`i_(a)=5.25%`%

Sove above equation,we will get

Monthly increase in revenue=
`i_(a)`=0.4273%