in 1998 the unemployment rate of a city decreased by approximately 1.2% each month. in January the unemployment rate was 8%. what was the rate in December? how would I solve it
Decreasing 1.2% per month means that the next month's unemplyment rate is 100 - 1.2 = 98.8 % of the previous month = .988
So eleven months elapse between January and December......so....December's rate =
8 (.988)^11 ≈ .7 %
