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Home > CCA > Chapter 8 > Lesson 8.2.5 > Problem 8-108

8-108.

Over a four month period the price of an ounce of gold steadily increased from $1000 to $1400. What was the monthly multiplier? What was the monthly percent increase? Homework Help ✎

First, ask yourself these questions:
What was the initial cost of an ounce of gold? The new price?
How long did it take for the gold to reach the new price?

If m is the monthly multiplier, then 1000(m)(m)(m)(m) = 1400.

The monthly multiplier is 1.088, and the monthly percent increase is 8.8%.