Question

If prices increase at a monthly rate of 2.6%, by what percentage do they increase in a year

Answer 1

Since there are 12 months in 1 year, the monthly rate woud multiply by 12. So, 2.6% × 12= 31.2%

Answer 2

To find the amount that prices would increase in a year, you have to multiply the monthly increase by the total number of months in a year.
This results in the expression:
2.6 x 12

Multiply to find your yearly percentage increase.
This leaves you with:
2.6 x 12 = 31.2

So the price increases by 31.2% yearly.

I hope is helps! :)