if the rate of increase is linear, then
rate = (1.25 - .10)/(2012-1972)
= 1.15/40 = .02875
or appr 3 cents a year
A can of soda in 1972 costs $0.10, by 2012 it cost $1.25.
Find the rate at which the cost of a can of soda increases over this time period.
2 answers
on the other hand, given the topic of the posting,
0.10(1+r)^40 = 1.25
(1+r)^40 = 12.5
1+r = 1.065
r = 6.5% per year
0.10(1+r)^40 = 1.25
(1+r)^40 = 12.5
1+r = 1.065
r = 6.5% per year
1 answer