We know that, Amount in Compound interest is given by :
Given : Principal = $2000
Given : Annual yield is 5% and the interest is compounded quarterly
It means : Interest is compounded 4 times in a year
Substituting all the values in the formula, we get :
Given-
Cost of milk 4 years ago = £1.05
To find-
Percentage increase in cost
Solution-
Increase in cost = £ ( 1.26 - 1.05 )
→ £ 0.21
Percentage increase :-
Therefore, Percentage increase of the cost of milk over 4 years is <u>2</u><u>0</u><u>%</u> .
✍️ <em>By </em><em>Benjemin</em> ☺️
2/10 represents 20 percent, as 10 is 100% because it is the Max, so something like 4/10 would be considered 40%