Question

Suppose you own a piece of art that increases in value by 50% the first year after you buy it,20% the second year, and 90& the third year. What is the average rate of increase of the piece of art over the three years?

Answer 1

Answer:

242%

Step-by-step explanation:

let value=100

50% increase after one year

after 1 year= 100×(1+50%)

=100×(1.5) = 150

second year increased by 20%

after 2nd year =150×(1+20%)

=150×1.2=180

3rd year increased by 90%

after 3rd year =180×(1+90%)

=180×1.9=342

rate of increase over 3 years

=342-100

_______ × 100 = 242%

100

hope this helps