SOLUTION: inflation is causing things to cost roughly 2 percent more per year. A bag of milk cost $4.75 now. How much will a bag of milk cost in 5 years? how much did the bag of milk cost 5

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Question 1192826: inflation is causing things to cost roughly 2 percent more per year. A bag of milk cost $4.75 now. How much will a bag of milk cost in 5 years? how much did the bag of milk cost 5 years ago?
Much thanks
Found 2 solutions by josgarithmetic, ikleyn:
Answer by josgarithmetic(39616) About Me  (Show Source):
You can put this solution on YOUR website!
Inflation IS CAUSING roughly 2% increase per year,...

The price of $4.75 in five years,
4.75%281.02%29%5E5
highlight%285.24%29

The price for five years ago, we are not given the rate of inflation from the past. That for "WAS", but that rate was not given. The question probably is expected to work like p%281.02%29%5E5=4.75
p=4.75%2F1.02%5E5
p=4.30

Answer by ikleyn(52776) About Me  (Show Source):
You can put this solution on YOUR website!
.

On inflation,  see numerous solved problems in the lesson
    - Inflation and Salary problems
in this site.

Learn the subject from there.