If the monthly inflation rate for a certain month is 0.8%, and assuming that rate remains constant, what is the corresponding annual inflation rate?

Question

anonymous · Answer

Assuming you will be applying that increase to each previous value monthly, "compounding monthly," 

annual rate = (1+0.008)^12

anonymous · Answer

The answer is 10.034%. I just don't know how to get there.

anonymous · Answer

My calculator indicates that (1.008)^12 = 1.10034,
but the 1 is your principal, your investment, and the increase is .10034 = 10.034%

What I gave you originally was not the annual rate, but what would be the result at the end of the year. To get the rate, we needed to subtract the 1. Sorry.