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Let the inflation rate be 6.5% each year for the next 8 years. Over this period...

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*

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Answer #1

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%

If you have any query related to question then feel free to ask me in a comment.Thanks.

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