Question

​ hyperinflation, which is extraordinarily large inflation in prices. At the peak of the​ hyperinflation, prices rose 25 comma 000​% per month. At this​ rate, by what percentage would prices have risen in 1​ year? In 1​ day? (Assume 30 days per​ month.) g

Answer 1

Answer:

if the inflation rate was 25,000% per month

in one year, inflation rose by =(1 + 250)¹² - 1 = 62,529,457,066,666,666,666,000,000,000 - 1 = 62,529,457,066,666,666,665,999,999,999 x 100% = 6,252,945,706,666,666,666,599,999,999,900%

inflation rate per day:

250 = (1 + r)³⁰ - 1

251 = (1 + r)³⁰

³⁰√251 = 1 + r

1.2022 = 1 + r

r = 0.202234 or 20.2234% daily