SOLUTION: Three years ago the average price of a movie ticket was $8.75 and now it is $11. What was the annual multiplier and the percent increase?

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Question 1077236: Three years ago the average price of a movie ticket was $8.75 and now it is $11. What was the annual multiplier and the percent increase?

Answer by Boreal(15235) About Me  (Show Source):
You can put this solution on YOUR website!
% increase is increase/original amount or 2.25/8.75=25.7% over 3 years
11=8.75(1+r)^3
divide by 8.75
1.257 (don't round until the end)=(1+r)^3
take ln of both sides
.2288=3ln(1+r)
divide by 3 both sides
.0763=ln (1+r)
raise both sides to the e power
1.0792=1+r
0.0792=r
7.92% per year.
1.0792^3=1.257