During a two-month period gasoline increased from $4.10 per gallon to $4.35 per gallon. Assuming prices increased in a geometric sequence, what was the monthly multiplier and what was the percent increase?
To find the monthly multiplier, write an equation and solve for the variable.
New price = (original price)(multiplier for month 1)(multiplier for month 2)
$4.35 = $4.10(x)(x) or $4.35 = $4.10x2
x ≈ 1.03 Therefore the percent increase is 3%.