Between 2005 and 2008 , the average rate of inflation was about 4.6 % per year. If a cart of groceries cost $110 in 2005, what did it cost in 2008?

Question

Mathematics

Kamila Mathews

7 December, 19:48

Between 2005 and 2008 , the average rate of inflation was about 4.6 % per year. If a cart of groceries cost $110 in 2005, what did it cost in 2008?

+3

Answers (2)

Know the Answer?

Phoenix Luna · Answer 1

We can use the compound (interest) formula: A = P x (1 + r/100) ^n

Where A is our final cost, P is our original price in 2005 = $110, r is our inflation rate = 4.6, and n is our number of years from 2005 to 2008 = 3.

Apply this to the formula: A = 110 x (1 + 4.6/100) ^3 = $125.8889 = $126.

The cart of groceries cost a total of $126 in 2008.

Kathleen Whitney · Answer 2

Kathleen Whitney 7 December, 21:14

0

The answer is 492.52016