document.write( "Question 1198085: Given the inflation model C(t)=C0(1+r)t and given that a can of soup that currently sells for $1.18 sold for $0.90 3 years ago, what has the average annual rate of inflation been for the past 3 years? Round to two decimal places. \n" ); document.write( "

Algebra.Com's Answer #831639 by ikleyn(52786) $\"\"$ $\"About$

You can put this solution on YOUR website!
.
\n" ); document.write( "Given the inflation model C(t)=C0(1+r)t and given that a can of soup that currently sells
\n" ); document.write( "for $1.18 sold for $0.90 3 years ago, what has the average annual rate of inflation been
\n" ); document.write( "for the past 3 years? Round to two decimal places.
\n" ); document.write( "~~~~~~~~~~~~~~~~\r
\n" ); document.write( "
\n" ); document.write( "\n" ); document.write( "

\r\n" );
document.write( "From the problem,\r\n" );
document.write( "\r\n" );
document.write( "    1.18 = ,    (1)\r\n" );
document.write( "\r\n" );
document.write( "\r\n" );
document.write( "and they want you find the rate \"r\".  From (1)\r\n" );
document.write( "\r\n" );
document.write( "     = \r\n" );
document.write( "\r\n" );
document.write( "    1.31111111 = \r\n" );
document.write( "\r\n" );
document.write( "    1 + r =  = 1.094493448.\r\n" );
document.write( "\r\n" );
document.write( "\r\n" );
document.write( "Hence,  r = 1.094493448 - 1 = 0.094493448...\r\n" );
document.write( "\r\n" );
document.write( "\r\n" );
document.write( "Round as you need . . . \r\n" );
document.write( "

\r
\n" ); document.write( "\n" ); document.write( "Solved.\r
\n" ); document.write( "
\n" ); document.write( "
\n" ); document.write( "\n" ); document.write( " \n" ); document.write( "

\n" );