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?
---
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.