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Show that a 5% increase followed by a 5% increase is larger than a 10% increase.

This was my homework and I don't really get it. Could someone help me please?!
 Mar 1, 2012
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AntVenom:

Show that a 5% increase followed by a 5% increase is larger than a 10% increase.

This was my homework and I don't really get it. Could someone help me please?!



5%+5%

for example if you want to calculate: 1+5%+5%
X+<percent value> = X*(1+<percent value>/100)

1*(1+5%)*(1+5%)
(1*(1+5/100))*(1+5/100)
1*1.05*1.05
1*1.1025
and that's 10.25% > 10%
 Mar 1, 2012

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