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The value of a stock increases by 8% each year.
1. Explain why the stock value does not increase by 80% each decade.
2. Does the value increase by more or less than 80% each decade?

Respuesta :

janmilczek

Answer:

if it increases 8% each year, the next year it's not 8% of the original, but 8% of the 108% and so forth.

The increase after 10 years is (108%)^10 - 100% which is bigger than 80%.

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