Question

The library at a certain university reported that journal prices had increased by 130% over a period of 10 years. The report concluded that this represented a price increase of 13% each year. If journal prices had indeed increased by 13% each year, what percentage increase would that give over 10 years? (Round your answer as a percentage to the nearest whole number.)

Answer 1

Answer:

300%

Step-by-step explanation:

Here we have an exponential function, $y=ab^x$and it is one of the most important functions in the mathematics. In this case, the independet variable is the exponent.

Here we have that represented price increase of 13% each year, which means that $b=1.13>1$  in our exponential function, while $a$ represent the journal price at the begining.

So we get the following function:

$y=a(1.13)^x,$

where $x$ represents number of years. After 10 years, we get:

$y=a(1.13)^{10}=3.395a$

The conclusion is that over 10 years, the percentage of increase would be about 300%.