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If an investment increases 1% the first year, 5% the second year and 9% the third year, what is the "average" percent increase? (Enter answer as a percent, rounded to 1 decimal place). Remember two things. First, percentages are applied using multiplication, so you cannot just add the 3 numbers together and divide by 3. Also, percent increases and decreases result in "percent of" so the factors in the multiplication are NOT the percent increases, but the "percents of". You have to start by finding the geometric mean of the "percents of" and then use that to give the "average" percent increase.

If an investment increases 1% the first year, 5% the second year and 9% the third year, what is the "average" percent increase? (Enter answer as a percent, rounded to 1 decimal place). Remember two things. First, percentages are applied using multiplication, so you cannot just add the 3 numbers together and divide by 3. Also, percent increases and decreases result in "percent of" so the factors in the multiplication are NOT the percent increases, but the "percents of". You have to start by finding the geometric mean of the "percents of" and then use that to give the "average" percent increase.

College Algebra
College Algebra
1st Edition
ISBN:9781938168383
Author:Jay Abramson
Publisher:Jay Abramson
Chapter7: Systems Of Equations And Inequalities
Section7.2: Systems Of Linear Equations: Three Variables
Problem 61SE: Last year, at Haven's Pond Car Dealership, for a particular model of BMW, Jeep, and Toyota, one...
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If an investment increases 1% the first year, 5% the second year and 9% the third year, what is the "average" percent increase? (Enter answer as a percent, rounded to 1 decimal place). Remember two things. First, percentages are applied using multiplication, so you cannot just add the 3 numbers together and divide by 3. Also, percent increases and decreases result in "percent of" so the factors in the multiplication are NOT the percent increases, but the "percents of". You have to start by finding the geometric mean of the "percents of" and then use that to give the "average" percent increase.
Transcribed Image Text:If an investment increases 1% the first year, 5% the second year and 9% the third year, what is the "average" percent increase? (Enter answer as a percent, rounded to 1 decimal place). Remember two things. First, percentages are applied using multiplication, so you cannot just add the 3 numbers together and divide by 3. Also, percent increases and decreases result in "percent of" so the factors in the multiplication are NOT the percent increases, but the "percents of". You have to start by finding the geometric mean of the "percents of" and then use that to give the "average" percent increase.
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