Last year, the total revenue for Home Style, a national restaurant chain, increased 5.25% over the previous year. If this trend were to continue, which expression could the company's chief financial officer use to approximate their monthly percent increase in revenue? [Let m represent months.](1) (1.0525)mt(3) (1.00427)m(2) (1.0525)m12(4) (1.00427)12m
Q. Last year, the total revenue for Home Style, a national restaurant chain, increased 5.25% over the previous year. If this trend were to continue, which expression could the company's chief financial officer use to approximate their monthly percent increase in revenue? [Let m represent months.](1) (1.0525)mt(3) (1.00427)m(2) (1.0525)m12(4) (1.00427)12m
Question Prompt: The question_prompt: What expression should the company's chief financial officer use to approximate their monthly percent increase in revenue given a 5.25% annual increase?
Convert Annual Rate to Monthly Rate: To find the monthly percent increase, we need to convert the annual increase rate to a monthly rate. Since there are 12 months in a year, we need to find the 12th root of the annual increase factor to get the monthly increase factor.
Calculate 12th Root of Annual Increase Factor: The annual increase factor is 1.0525 (which represents a 5.25% increase). To find the monthly increase factor, we calculate the 12th root of 1.0525.
Express 12th Root as Monthly Increase Factor: The 12th root of 1.0525 can be expressed as (1.0525)121. This will give us the factor by which the revenue increases each month.
Find Monthly Increase Factor: Using a calculator or a mathematical software to find the 12th root of 1.0525, we get approximately 1.00427. This means that the monthly increase factor is approximately 1.00427.
Final Expression for Monthly Percent Increase: The expression that the company's chief financial officer should use to approximate their monthly percent increase in revenue is therefore (1.00427)m, where m represents the number of months.
More problems from Multiplication with rational exponents