The price of milk is expected to increase by approximately AED 0.119 in nine months due to inflation.
Given the current milk price of AED 2.99 and an annual inflation rate of 5.3%, we can estimate the price increase over nine months. Since inflation is typically calculated as a yearly percentage, we need to adjust it for the nine-month period.
To do this, we can first calculate the monthly inflation rate by dividing the annual rate by 12. In this case, the monthly inflation rate would be 5.3% / 12 = 0.44%.
Next, we can use the compound interest formula to calculate the future price of milk after nine months:
Future Price = Current Price * (1 + Monthly Inflation Rate)^Number of Months
Plugging in the values, we get:
Future Price = AED 2.99 * (1 + 0.0044)^9
Future Price ≈ AED 3.108