Question

If prices increase at a monthly rate of 0.1%, by what percentage do they increase in a year?

Answer 1

Explanation:

Since the prices increase at a monthly rate of 0.1% per month. To find the percentage do they increase a year, we need to convert 0.1% to a decimal.

So here how we do it. We put 0.1 percent on the numerator because it a small number which is what we want over 100 like this:

`(0.1)/(100)`

Now when plugging this into your calculator you get:

0.001

.So what do we do with this number?

We now times it by 12 like this:

0.001 x 12 which gives us:

0.012

So we can convert this back to a percentage by moving the decimal by 2 places to the right which gives us 1.2%.

Another way we could of done this without doing the long way to figure it out is by multiplying 0.1 times 12 which still gives us 1.2%