Question

13) Assume the current cost of milk is $2.70.

Given an annual inflation rate of 3% how
much will milk cost in 30 years?

Answer 1

9514 1404 393

Answer:

$6.55

Explanation:

The cost will be multiplied by 1 +3% = 1.03 each year, so after 30 years, the cost will be ...

$2.70 × 1.03^30 ≈ $6.55