Question

8. At a wholesale food distribution center, the price of sugar has increased 6.3% annually since 1980.

Suppose sugar cost $0.43 per pound in 1980 and this growth continues. What will a pound of sugar
cost in 2017? Use y = a(1 + r) and round to the nearest cent.
a. $4.12 b. $1.21
c. $0.42 d. $3.30

Answer 1

Answer: A. $4.12

Explanation:

Y=a(1+r/n)^nt is the equation we use to solve this.

a= $0.43

t=37 - take 1980 and subtract it from 2017

r= .063 - the 6.3% goes into a decimal

n = 1

Y= ?

Y= 0.43( 1+ .063/1) ^1*37

Y= 0.43 (1.063) ^37

Y= 4.12