Answer:
Bill after three years = $112.5
Step-by-step explanation:
The value of grocery bill = 100
The rate by which the bill grows = 4%
Now we have two values that are present value and the inflation rate. We are required to find out the total amount of grocery bill after 3 years. So, use the below formula to find the estimated amount after three years.
Bill after three years = 100 × (1+4%)^3
Bill after three years = $112.5