SOLUTION: Hi! I have two questions that I'm pretty stumped on. Today a typical family of four spends $960/month for food. If inflation occurs at the rate of 3%/year over the next 7 years

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Question 914568: Hi! I have two questions that I'm pretty stumped on.
Today a typical family of four spends $960/month for food. If inflation occurs at the rate of 3%/year over the next 7 years, how much should the typical family of four expect to spend for food 7 years from now? (Round your answer to the nearest cent.)
Anthony invested a sum of money 9 years ago in a savings account that has since paid interest at the rate of 12%/year compounded quarterly. His investment is now worth $17,389.67. How much did he originally invest?
Thank you!
Answer by ewatrrr(24785) About Me  (Show Source):
You can put this solution on YOUR website!
In General A%28t%29+=+P%281%2Br%2Fn%29%5E%28nt%29
A = Accumulated Amount
P= principal =
r= annual rate = .
n= periods per year =
t= years =
I. A%28t%29+=+960%281.03%29%5E%287%29
II. 17389.67+=+P%281.04%29%5E%2836%29
17389.67+%2F%281.04%29%5E%2836%29++=+P+