Question

Find the annual infiltration rate for the nearest 10th of a percent of a gallon of milk that increases the value from $1.51 to $2.03 over a period of seven years.

Answer 1

7.429 cents

Explanation:

Given that:

Price change = $1.51 to $2.03

Period of time = 7 years

Therefore, the annual inflation rate :

Difference in price / number of years

($2.03 - $1.51) / 7

$0.52 / 7

= 0.0742857 per year

= 0.0742857 * 100 (about 7.429 cents per year)