2014 · Q52
The price of a commodity increased by 5% from 2010 to 2011, 8% from 2011 to 2012 and 77% from 2012 to 2013. What is the average price increase (approximate) from 2010 to 2013?
Elementary MathematicsPercentages
- A26%
- B32%
- C24%
- D30%
Explanation
Overall factor 1.05 × 1.08 × 1.77 ≈ 2.007; the annualised rate is 2.007^(1/3) − 1 ≈ 26%.