Question

The library at a certain university reported that journal prices had increased by 120% over a period of 10 years. The report concluded that this represented a price increase of 12% each year. If journal prices had indeed increased by 12% each year, what percentage increase would that give over 10 years? (Round your answer as a percentage to the nearest whole number.)

Answer 1

8% increase

Explanation:

In this question, we are asked to calculate the percentage increase that a certain increment will give over a period of 10 years.

Let the increment be x

Mathematically from the question, we can obtain that ;

(1+x)^10 = (1+1.2)

(1+x)^10 = 2.2

1+ x = 2.2^1/10

1+x = 1.082

x = 1.082 - 1

x = 0.082

This means that x = 8.2% which is approximately 8%