SOLUTION: The rate of inflation measures the percentage increase in the price of consumer goods. The rate of inflation in the year 2014 was 2% per year. To get a sense of what this rate woul
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Question 1168365: The rate of inflation measures the percentage increase in the price of consumer goods. The rate of inflation in the year 2014 was 2% per year. To get a sense of what this rate would mean in the long run, let's suppose that it persists through 2034.
What would be the cost in 2015 of an item that costs $300 in 2014? (Round your answer to the nearest cent.) Found 2 solutions by Boreal, ikleyn:Answer by Boreal(15235) (Show Source):
You can put this solution on YOUR website! This is 300(1.02)=$306 in 2015, which is what was asked.
If it is 2035, rather than 2015, then it is 300(1.02)^20=$445.78.
