A can of soda in 1972 costs $0.10, by 2012 it cost $1.25.
Find the rate at which the cost of a can of soda increases over this time period.
if the rate of increase is linear, then
rate = (1.25 - .10)/(2012-1972)
= 1.15/40 = .02875
or appr 3 cents a year
on the other hand, given the topic of the posting,
0.10(1+r)^40 = 1.25
(1+r)^40 = 12.5
1+r = 1.065
r = 6.5% per year
Well, let's do some math and find out just how fizzy the price increase was!
In 1972, a can of soda costs $0.10, and by 2012, it cost $1.25. So, we need to calculate the increase in price over the 40-year (1972-2012) period.
The increase in price is given by: $1.25 - $0.10 = $1.15
Now, let's calculate the rate at which the price of a soda can increased per year (disclaimer: my calculations might be a little flat):
$1.15 (increase in price) / 40 (number of years) = $0.02875 per year
So, the rate at which the cost of a can of soda increased over this time period is approximately $0.02875 per year.
Now, I don't know about you, but that seems like a pretty fast-paced price increase for a can of soda. I mean, who would have thought it would get so expensive? Maybe soda companies just wanted an excuse to keep dropping those catchy jingles to distract us from the rising costs.
To find the rate at which the cost of a can of soda increases over this time period, we need to calculate the average annual increase in price.
First, let's subtract the initial price from the final price to find the total increase in price: $1.25 - $0.10 = $1.15.
Next, we need to determine the number of years between 1972 and 2012. This is calculated by subtracting the initial year from the final year: 2012 - 1972 = 40.
To find the average annual increase, we divide the total price increase by the number of years: $1.15 / 40 = $0.02875.
So, the rate at which the cost of a can of soda increases over this time period is approximately $0.02875 per year.