Question

The price of fancy coffee has increased 9% each year for the last several years.

If the current cost $8 per pound, what did a pound cost two years ago

Answer 1

$6.56

Explanation:

First, take 8 and divide it by 100. Then you have 0.08. multiply that by 9. You get 0.72, that is how much the price increases every year. multiply that by 2, and you get 1.44. subtract 1.44 from 8, and you are left with $6.56, the price it was two years ago.