SOLUTION: An item presently costs P 1,000. If the inflation rate is 8% per year, which of the following will be the cost of the item in 2 years?

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Question 1199374: An item presently costs P 1,000. If the inflation rate is 8% per year, which of the following will be
the cost of the item in 2 years?

Answer by ikleyn(52790)   (Show Source): You can put this solution on YOUR website!
.

In two years, the cost of the item will be

         = = 1000*1.1664 = 1166.40   monetary P-units.     ANSWER

Solved.

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