SOLUTION: Percentages 5. From 1982 to 2012, the cumulative U.S. inflation rate was 95%. In 2012, the average price of a decent burger, fries, and a drink was $8.75. Find the equivalent

Algebra ->  Finance -> SOLUTION: Percentages 5. From 1982 to 2012, the cumulative U.S. inflation rate was 95%. In 2012, the average price of a decent burger, fries, and a drink was $8.75. Find the equivalent      Log On


   

Question 1041132: Percentages
5. From 1982 to 2012, the cumulative U.S. inflation rate was 95%. In 2012, the average price of a decent burger, fries, and a drink was $8.75. Find the equivalent price in 1982 dollars.
____________________
Answer by jorel555(1290) About Me  (Show Source):
You can put this solution on YOUR website!
If the cumulative inflation rate is 95% over a certain period, then goods sold at the end of that period are 1+.95 times what they were at the beginning. Thus:
8.75=(1+.95)n
n=8.75/1.95
n=$4.49 was the price in 1982 (Too bad you can't go back!!!!) ☺☺☺☺