Answer:
37.67%
Explanation:
Suppose initially a price of $ 100
Increasing per month at a rate of 2.7%. Which is equal to 0.027
Now applying the formula:
Vf = Vi * (1 + m) ^ n
where Vf is the final quantity, Vi is the initial value, m is the rate and n is the number of months.
We know that 1 year, is 12 months, since the rate is monthly means, n = 12, we replace:
Vf = 100 * (1 + 0.027) ^ 12
Vf = 137.67
It means price increase in 1 year = 137.67 - 100 = 37.67
Which means that n a year increases to 37.67%