Question

During the worst periods of hyperinflation in a certain country, the price of food increased at a rate of 15% per month. State whether this increase was linear or exponential. If your food bill was $130 in one month during this period, what was it three months later?What was the monthly food bill after three months?$  enter your response here

Answer 1

Given:

Increased rate = 15%

One month bill = $130

Find-:

What was the monthly food bill after three​ months?

Explanation-:

Formula:

`A=P(1+(r)/(100))^n`

Where,

`\begin{gathered} A=\text{ Amount after time} \\ \\ P=\text{ Initial amount} \\ \\ r=\text{ Rate} \\ \\ n=\text{ Time period } \end{gathered}`

The given value is:

`\begin{gathered} P=130 \\ \\ r=15 \\ \\ n=3 \end{gathered}`

Amount after 3 months.

`A=P(1+(r)/(100))^n`
`\begin{gathered} A=130(1+(15)/(100))^3 \\ \\ A=130(1+0.15)^3 \\ \\ A=130(1.15)^3 \\ \\ A=130*1.521 \\ \\ A=197.714 \end{gathered}`

So, the food bill after three months is $197.714