Question

If a gallon of milk costs $5.25 now and the price is

increasing 6% each year, how long before a gallon
of milk costs $12?

Answer 1

Answer: It will take approximately 21 years.

Explanation:

6 percent of 5.25 is 0.315 (5.25 x 0.06 = 0.315)

Then you subtract 5.25 from 12 to calculate the number of years. (12 - 5.25 = 6.75)

Divide 0.315 from 6.75 (6.75 / 0.315 ≈ 21.4)