SOLUTION: the price of certain commodity increases by 20% in 1991 and by 30% in 1992 and by 45% in 1993. what is the average percentage rate in the price of the commodity?
Algebra ->
Probability-and-statistics
-> SOLUTION: the price of certain commodity increases by 20% in 1991 and by 30% in 1992 and by 45% in 1993. what is the average percentage rate in the price of the commodity?
Log On
Question 508356: the price of certain commodity increases by 20% in 1991 and by 30% in 1992 and by 45% in 1993. what is the average percentage rate in the price of the commodity? Answer by stanbon(75887) (Show Source):
You can put this solution on YOUR website! the price of certain commodity increases by 20% in 1991 and by 30% in 1992 and by 45% in 1993. what is the average percentage rate in the price of the commodity?
---
Let starting price be "x"
In '91 the price is 1.2x
In '92 the price is 1.3(1.2)x
In '92 the price is 1.45(1.3)(1.2x)
----
The final price is 2.262x
---
Increase over the 3 years is 2.262x-x = 1.262x
Average increase over the 3 years is 1.262/3 = 0.4207 = 42.07%
==========
Cheers,
Stan H.
(