Question

What is the growth factor that corresponds to a product that increases its value first by 2%, and then increases by 5% of its value, and finally increases by 12% of its value? Round to the tenths place.

Answer 1

The answer is a.1.20

Answer 2

Answer:

The growth factor would be 1.2 ( approx ).

Step-by-step explanation:

A growth factor is a multiplier that grows a quantity.

Let x be original value,

After increasing the value by 2 %,

The new value would be (100+2)% of x,

Again after increasing that value by 5 %,

The new value would be (100+5)% of (100+2)% of x

Finally increasing that value by 12 %,

The final value would be (100+12)% of (100+5)% of (100+2)% of x

= 112 % of 105 % of 102 % of x

$=\frac{112}{100}\times \frac{105}{100}\times \frac{102}{100}\times x$

$=\frac{1199520}{1000000}x$

$=1.199520x\approx 1.2x$

Thus, by the above statement,

The growth factor would be 1.2.