Price increase

Question

The library at a certain university reported that journal prices had increased by 120% over a period of 10 years. The report concluded that this represented a price increase of 12% each year. If journal prices had indeed increased by 12% each year, what percentage increase would that give over 10 years? (Round your answer as a percentage to the nearest whole number.)

Answer 1

you want to solve

 

(1 + x)¹⁰ = (1 + 1.2) or

 

(1 + x)¹⁰ = 2.20

 

1 + x = 2.20^.10

 

1 + x = 1.082

 

x = 8.2%