SOLUTION: The average 5oz cup costs $5.79 in 2012. Inflation since 2005 has been 5%, what was the averae cost a 5oz cup in 2001?

Algebra ->  Customizable Word Problem Solvers  -> Finance -> SOLUTION: The average 5oz cup costs $5.79 in 2012. Inflation since 2005 has been 5%, what was the averae cost a 5oz cup in 2001?      Log On

Ad: Over 600 Algebra Word Problems at edhelper.com


    

Question 709804: The average 5oz cup costs $5.79 in 2012. Inflation since 2005 has been 5%, what was the averae cost a 5oz cup in 2001?
Answer by stanbon(75887) About Me  (Show Source):
You can put this solution on YOUR website!
The average 5oz cup costs $5.79 in 2012. Inflation since 2005 has been 5%, what was the averae cost a 5oz cup in 2001?
---
Let average cost in 2001 be "x";
Equation:
(1.05)^11*x = 5.79
x = 5.79/(1.05)^11
x = $3.39
================
Cheers,
Stan H.
================