Let the inflation rate be 6.5% each year for the next 8 years. Over this period of time, what would be the increase in value of a $14 carton of milk? *Do not round intermediate answers*
Solution:- Given in Question-
Inflation Rate = 6.50%
Time = 8 years
Current Value = $14
To Calculate Increase in Value-
Value after 8 year =
Value after 8 year =
Value after 8 year =
Value after 8 year = $23.17
Increase in Value (In $) = Value after 8 year - Current Value
Increase in Value (In $) = $23.17 - $14
Increase in Value (In $) = $9.17
Increase in Value (In %) =
Increase in Value (In %) = 65.50%
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