Question

The year 2018 price of a fast food meal at a certain restaurant is given below. Find the estimated future prices required to fill the blanks in the chart.

Item: a fast food meal

Year: 2018 - $5.12

Year: 2024 - $______ (with 4% inflation)

Year: 2030 - $______ (with 4% inflation)

Year: 2024 - $______ (with 9% inflation)

Year: 2030 - $______ (with 9% inflation)

(all rounded to two decimal places as needed)

*I need exact step bu step Excel formulas to solve*

My books's answers are: $6.51 - $8.27 - $8.79 & $15.08

I can't figure out how to reach these answers with the formulas I'm using.

Answer 1

with the same information given in the question i figured out the following answers.

Formula = price * ( 1 + rate)^time

time is 6 years and 12 years respectively for 2024 nd 2030

so

and the answer is

may be due to approximations the after point values not match but dont take it as a serious matter because 0.01 is not a big deal

thanks

please comment for further clarifications

please like my work