During the worst periods of hyperinflation in a certain country, the price of food increased at a rate of 25% per month. State whether this increase was linear or exponential. If your food bill was 100 in one month during this period, what was it three months later?
Solution:-
Linear growth occurs when a quantity grows by the same absolute amount in each unit of time.
Exponential growth occurs when a quantity grows by the same relative amount, that is, by the same percentage in each unit of time.
The monthly food bill increase by 25% in each of the three months. After 1 month the amount of the increase in monthly food cost can be found by multiplying 25% original monthly food cost.
0.25 * 100 = 25.00
Add to find that the monthly food bill after 1 month was 125.00
100+20.00 = 125.00
In the next month the food bill again increased by 25%. After 23 months the amount of the increase can be found by multiplying 25% by the food bill after 1 month.
0.25*125.00 = 31.25
Add to find that the monthly food bill after 2 months was 156.25.
125.00 + 31.25 = 156.25
After 3 months the monthly food bill rose by another 25%. The amount of the increase can be found by multiplying 25% by the food after 2 months.
0.25*156.25 = 39.06
Add to find the monthly food bill after 3 months was 195.31
156.25+39.06 = 195.31
Round to the nearest dollar.
The monthly food after 3 months was 195.
during the worst periods of hyperinflation in a certain country, the price of food increased at a rate of 25% er month. State whether this increase was linear or exponential. If your food bill was $160 in one month during this period, what was it three months later?