Question

The current cost of gourmet coffee Is $14 per pound At the corner market the cost has increased 10% Per year over the past few years What did the coffee cost 2 years before ?

Answer 1

$11.57

Explanation:

Let's call the price of the coffee two years ago by X.

The price increased 10% per year (that is, the price is multiplied by 1+0.1=1.1) over two years, so the current price is:

X * 1.10 * 1.10 = X * 1.21

If the current price is $14, we have that:

X * 1.21 = 14

X = 14/1.21 = 11.57

The price of the coffee two years ago was $11.57