If prices increase at a monthly rate of 10, 000 %, by what percentage do they increase in a year? In a day? (Assume 30 days per month.) The annual inflation rate is about ______ times 10 ^_______%.
(Type whole numbers.)
Is it really 10,000% per month? If it is, then we have:
[1 + 10,000/100]^12 =[1 + 100]^12 =101^12 - 1 x 100 =1.13 x 10^26% per year !!!!!
[1 + 10,000/100]^(1/30) =101^(1/30) =1.1663 - 1 x 100 =16.63% per day !!!!!.
So that: [1 + 0.1663]^360 =1.13 x 10^24 x 100 =1.13 x 10^26% per year !!!!!.
Note: I used 360 days because we took a month to be 30 days x 12 =360 days.
