Question

A pound of potatoes in 1976 was $0.75 and it was $3.49 in 2010. if the cost of a pound of potatoes had grown with inflation, what would have been the expected value in 2010? round to the nearest cent.

Answer 1

To find the expected value of a pound of potatoes in 2010, we need to calculate the inflation rate from 1976 to 2010. The expected value is $2.74.

Step-by-step explanation:

To find the expected value of a pound of potatoes in 2010, we need to calculate the inflation rate from 1976 to 2010. The formula for calculating the inflation rate is:

Inflation Rate = (Price in 2010 - Price in 1976) / Price in 1976

Using the given information, we can calculate the inflation rate for potatoes:

Inflation Rate = ($3.49 - $0.75) / $0.75 = 3.65

Next, we need to multiply the price of potatoes in 1976 by the inflation rate to find the expected value in 2010:

Expected Value = $0.75 * 3.65 = $2.74

Rounding to the nearest cent, the expected value of a pound of potatoes in 2010 would be $2.74.