1985 AMC 8 Problem 21

Attempt Problem 21 of the 1985 AMC 8 below, then check your answer against the professionally curated solution from LIVE by Po-Shen Loh. You can also try the full timed exam, view all 1985 AMC 8 solutions, or check the answer key.

All problems are used with official legal permission of the Mathematical Association of America (MAA).

21.

Mr. Green receives a 10%10\% raise every year. His salary after four such raises has gone up by what percent?
less than 40%40\%
40%40\%
44%44\%
45%45\%
more than 45%45\%
Answer: E
Concepts:percentageexponent
Small hint:
Applying a 10%10\% raise multiplies the salary by 1.11.1
Big hint:
After four raises the salary is multiplied by 1.14;1.1^4; compare that to 1.451.45
Solution:
After four raises the salary is multiplied by 1.14=1.4641.1.1^4 = 1.4641.
That is an increase of 46.41%,46.41\%, which is more than 45%.45\%.
Thus, the correct answer is E .
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