may 2009 042 Show all work to final result for full credit

may 2009 : $ 0.42

Show all work to final result for full credit

. Price of a First Class Stamp: . May 2006: $0.39 . May 2007: $0.41 . May 2008: $0.42 . May 2010: $0.44 ·May 2011: $TBA*

Solution

(a) Annual percentage increase

(0.44-0.42)/0.42*100 = 0.02/0.42*100= 4.76%

(b) average rate of increase

(0.42-0.39)/0.39*100= 0.03/0.39*100= 7.69%