Answer: C) 0.833%
Step-by-step explanation:
Given: Cost price of house = $120,000
The rate of increase of its cost = 10%
Therefore, the increase amount of house per year =10% of $120,000
[tex]=\frac{10}{100}\times120000=\$12,000[/tex]
Now, the amount increase each month=[tex]\frac{12000}{12}=\$1000[/tex]
Let r be the rate of growth each month, then
r% of $120,000=1000
[tex]\Rightarrow\frac{r}{100}\times120000=1000\\\Rightarrow\ r\times1200=1000\\\Rightarrow\ r=\frac{1000}{1200}=0.833\%[/tex]
